Millennium Post

Sesa Goa may miss output target due to mining ban

Vedanta group firm Sesa Goa is likely to miss the production target of about 15 million tonnes for the current fiscal due to mining ban in Goa, a senior company official said on Monday.

‘Obviously not. We can not give you any number at this time,’ Sesa Goa’s managing director P K Mukherjee said when asked whether the company will be able to achieve its guidance after the imposition of ban.

During the first half of the fiscal, the company has produced about 3.7 million tonnes (MT) iron ore. For 2012-13, it has given a production guidance of about 15 MT.

However, the mining ban in Goa has affected Sesa Goa’s performance in the last quarter. All its operations, except met coke and pig iron production, are closed.

Without Rs 464.63 crore profit, for its 20 per cent holding in Cairn India, the Goa-based iron ore miner would have posted a consolidated net profit of Rs 57.61 crore in the quarter as many factors impacted its performance, largely due to the ban and other season factors.

Its sales was also down to Rs 288.49 crore during the quarter vis-a-vis Rs 784.14 crore of the corresponding period.

‘It depends which way Goa situation is moving. We can produce 1.5-2 MT iron ore every month as and when we get the permission to resume mining,’ Mukherjee said.
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