On Tuesday, the share prices of Sesa Goa and Sterlite Industries crashed 5.69 per cent at Rs 160 and 4.32 per cent at Rs 94.05 at the closing session on the BSE after media reports said that Goa Government has suspended all mining activities with immediate effect.  

A PTI report quoting the Goa State Mines and Geology Department said the Goa government issued a notification asking all the 90 mines to suspend operations with immediate effect.

"Chief Minister Manohar Parrikar said the mines would not be allowed to operate, if they were found to be carrying out work without the necessary permissions," the report added. 

The mine owners have been asked to submit their documents before they could start operations.

The temporary suspension came after Justice M.B. Shah Commission, in its report had claimed that all the 90 mines operating in the State were illegal as they did not have the permission from National Board for Wildlife. 

However, the companies have not informed the stock exchanges about the Goa ban and its impact on their revenue.

It may be recalled that last month Goa State Pollution Control Board had stopped the activity of Sesa Goa's metallurgical coke plant expansion due to two incidents of soot emissions owing to misfiring by two high capacity burners during commissioning of second battery of its metallurgical coke plant on August 17 and 18.

Vedanta Group companies Sterlite Industries and Sesa Goa recently received shareholders’ approval for the merger. 

According to the merger proposal, Sterlite shareholders will get three shares of Sesa Goa for every five shares held. Sesa Sterlite will become the seventh largest diversified resources company in the world with business interests in iron ore mining, copper, aluminium, zinc, lead, silver and oil and gas.

Related Topics
comment COMMENT NOW