Thursday, 05 Jan 2012
It is reported that the Finance Ministry decision to hike the export duty on iron ore from 20% to 30% within the space of a year spells bad news for iron ore miner Sesa Goa whose profit margins could take a further knock.
Sesa Goa exports medium-grade iron ore from its Goa mines to China. The company hawks low grade ore compared with international players and as such does not command pricing power. Its ability to pass through the higher levy therefore remains doubtful. The 30% export duty would translate to further margin pressures for the company.
The iron ore producer paid INR 660 crore in export duties on INR 8,586 crore of iron ore exports in FY11. During this period, export duties on iron ore fines averaged five per cent. Paying out 30% export duty could cripple Sesa Goa domestic operations which are struggling to raise output. Over the past year, the company has faced setbacks in the form of a ban on exports from its Karnataka mines and closure of Odisha mines.
Both the closures have hit volumes which slipped by nearly 14% to 5.8 million tonnes during the first half of FY12. The new mining Bill may require Sesa Goa to pay a charge equivalent to royalty which currently stands at 10% of the final price.
(sourced TheHinduBusinessline.com)
Showing posts with label Sesa Goa. Show all posts
Showing posts with label Sesa Goa. Show all posts
Thursday, January 5, 2012
Tuesday, January 3, 2012
India iron ore exports seen plunging after tax rise
Tue Jan 3, 2012
* Exports seen at 5 mln T for Jan-March quarter
* 2011/2012 exports seen at 50 mln T vs 97 mln T pvs year
* Concerns policy volatility may hurt India's supplier image
NEW DELHI, Jan 3 (Reuters) - India's iron ore exports are likely to be 75 percent lower than previously expected in the quarter ending in March as a rise in export duties kicks in as part of the government's push to conserve supplies for domestic steelmakers.
Asia's third-largest economy announced a 50 percent jump in export duties on Monday to 30 percent, prompting traders to slash their forecasts for exports for the year to March 2012 to around 50 million tonnes from 65 million. That was already down from 97 million tonnes last year.
Given that India had exported about 45 million tonnes in the nine months to December, it is likely to ship only another 5 million tonnes in the three months to March 31, top industry body, Federation of Indian Mineral Industries, said on Tuesday.
India is one of the world's biggest exporters of iron ore, with much of it bought by China, which has the world's largest steel industry. The shortage is expected to push up global prices by 7 to 10 percent over the current $140 a tonne, traders said.
"We are shocked at the decision to hike export tax on iron ore as such volatility in policy does not promote India's image as a reliable supplier," said Glen Kalavampara, secretary of the Goa Mineral Ore Exporters' Association. Goa is India's biggest exporter of iron ore.
"Absence of supplies from India will help Australian and Brazilian suppliers to consolidate their domination of the global market."
Indian exports were already down around a third from last year primarily due to legal wrangling over stalled shipments from a key producing state and efforts to conserve supplies.
Shares in Indian exporters Sesa Goa and NMDC slid on Monday after the announcement of the tax hike but closed up on Tuesday on fund buying at lower levels.
Deutsche Bank sharply reduced its earnings estimates for Sesa Goa -- by 29 percent this fiscal year and by 24 percent for 2012/13 -- on Tuesday, factoring in the increase in iron ore export tax among other reasons.
Steel companies continued Monday's gains. Tata Steel Ltd rose 6.1 percent to 361.85 rupees. Credit Suisse upgraded the world's No. 7 steelmaker to 'neutral' from 'underperform', citing valuation comfort at current levels.
The government has shown an inclination to conserve resources, though it does not support a blanket ban on exports, largely because the domestic steel industry does not have the technology to use ore fines. India mostly ships fines to China.
New Delhi also hopes that sustained Chinese demand means buyers would be willing to pay a slightly higher price.
"We think global demand will be able to absorb a slight adjustment in prices on the upside, which leaves a bit of room for us to adjust duties," an Indian ministry official said.
GLOBAL PRICES
Chinese steel mills had been expected to replenish stockpiles before their New Year holidays, which start on Jan. 22. Chinese markets are closed on Jan. 2.
China's iron ore imports are expected to rise 6 percent to a record 720 million tonnes in 2012, according to a Reuters poll conducted in December.
India's government is trying to cut down on illegal iron ore mining and shipments but favours better tracking and monitoring along with higher taxes rather than blanket bans on exports. It last raised the export duty in February 2011.
In April, the Supreme Court overturned an export ban imposed by Karnataka's state government in July 2010, but shipments have yet to pick up because of administrative delays.
The court has itself banned mining in some parts of the state due to environmental worries and allegations of illegal mining, allowing only state-run NMDC to mine in the areas.
Such regulatory uncertainty deflates industry confidence of India being a stable supplier.
Indian exports could slump below 10 million tonnes within three years as more ore is earmarked for domestic consumption, according to David Flanagan, managing director of Australian iron ore miner Atlas Iron.
Indian ore exporters say the government policy makes little sense as domestic steelmakers can hardly use fines.
Moreover, India's steel demand is likely to grow by only 6 percent in the current fiscal year, nearly half the earlier forecast, as higher interest rates squeeze demand from the automobile and construction sectors.
"Low-grade iron ore should have been free for exports," Kalavampara said.
(sourced Reuters)
* Exports seen at 5 mln T for Jan-March quarter
* 2011/2012 exports seen at 50 mln T vs 97 mln T pvs year
* Concerns policy volatility may hurt India's supplier image
NEW DELHI, Jan 3 (Reuters) - India's iron ore exports are likely to be 75 percent lower than previously expected in the quarter ending in March as a rise in export duties kicks in as part of the government's push to conserve supplies for domestic steelmakers.
Asia's third-largest economy announced a 50 percent jump in export duties on Monday to 30 percent, prompting traders to slash their forecasts for exports for the year to March 2012 to around 50 million tonnes from 65 million. That was already down from 97 million tonnes last year.
Given that India had exported about 45 million tonnes in the nine months to December, it is likely to ship only another 5 million tonnes in the three months to March 31, top industry body, Federation of Indian Mineral Industries, said on Tuesday.
India is one of the world's biggest exporters of iron ore, with much of it bought by China, which has the world's largest steel industry. The shortage is expected to push up global prices by 7 to 10 percent over the current $140 a tonne, traders said.
"We are shocked at the decision to hike export tax on iron ore as such volatility in policy does not promote India's image as a reliable supplier," said Glen Kalavampara, secretary of the Goa Mineral Ore Exporters' Association. Goa is India's biggest exporter of iron ore.
"Absence of supplies from India will help Australian and Brazilian suppliers to consolidate their domination of the global market."
Indian exports were already down around a third from last year primarily due to legal wrangling over stalled shipments from a key producing state and efforts to conserve supplies.
Shares in Indian exporters Sesa Goa and NMDC slid on Monday after the announcement of the tax hike but closed up on Tuesday on fund buying at lower levels.
Deutsche Bank sharply reduced its earnings estimates for Sesa Goa -- by 29 percent this fiscal year and by 24 percent for 2012/13 -- on Tuesday, factoring in the increase in iron ore export tax among other reasons.
Steel companies continued Monday's gains. Tata Steel Ltd rose 6.1 percent to 361.85 rupees. Credit Suisse upgraded the world's No. 7 steelmaker to 'neutral' from 'underperform', citing valuation comfort at current levels.
The government has shown an inclination to conserve resources, though it does not support a blanket ban on exports, largely because the domestic steel industry does not have the technology to use ore fines. India mostly ships fines to China.
New Delhi also hopes that sustained Chinese demand means buyers would be willing to pay a slightly higher price.
"We think global demand will be able to absorb a slight adjustment in prices on the upside, which leaves a bit of room for us to adjust duties," an Indian ministry official said.
GLOBAL PRICES
Chinese steel mills had been expected to replenish stockpiles before their New Year holidays, which start on Jan. 22. Chinese markets are closed on Jan. 2.
China's iron ore imports are expected to rise 6 percent to a record 720 million tonnes in 2012, according to a Reuters poll conducted in December.
India's government is trying to cut down on illegal iron ore mining and shipments but favours better tracking and monitoring along with higher taxes rather than blanket bans on exports. It last raised the export duty in February 2011.
In April, the Supreme Court overturned an export ban imposed by Karnataka's state government in July 2010, but shipments have yet to pick up because of administrative delays.
The court has itself banned mining in some parts of the state due to environmental worries and allegations of illegal mining, allowing only state-run NMDC to mine in the areas.
Such regulatory uncertainty deflates industry confidence of India being a stable supplier.
Indian exports could slump below 10 million tonnes within three years as more ore is earmarked for domestic consumption, according to David Flanagan, managing director of Australian iron ore miner Atlas Iron.
Indian ore exporters say the government policy makes little sense as domestic steelmakers can hardly use fines.
Moreover, India's steel demand is likely to grow by only 6 percent in the current fiscal year, nearly half the earlier forecast, as higher interest rates squeeze demand from the automobile and construction sectors.
"Low-grade iron ore should have been free for exports," Kalavampara said.
(sourced Reuters)
Monday, December 19, 2011
Exports may be canalized - Report
Monday, 19 Dec 2011
Business Standard reported that to monitor iron ore exports, a cause of illegal mining, the Indian government plans to canalise exports of the mineral.
The report quoted a senior official as saying that “The proposal will be sent to the Union Cabinet once inter ministerial discussions are completed. The ministry of mines is in discussion with the ministry of commerce and industry.”
He told BS “The basic idea is to have a single agency accountable for the illegalities that arise in the iron ore trade.”
The official said “The setting up of a canalising agency would act as a short-term solution until we put in place mechanisms to improve poor last-mile governance in mineral-rich states, the basic reason for illegal mining.”
The report added that the government is considering the recommendation on a ban on exports in the context of the export import policy.
Currently, iron ore exporting companies enter independent bilateral deals with foreign entities. If the canalising proposal comes through, big exporters such as Sesa Goa, Fomento Resources, MSPL Ltd and VM Salgaokar & Bro would be forced to execute these contracts through a government owned company such as MMTC, NMDC or State Trading Corporation.
(Sourced from BS)
Business Standard reported that to monitor iron ore exports, a cause of illegal mining, the Indian government plans to canalise exports of the mineral.
The report quoted a senior official as saying that “The proposal will be sent to the Union Cabinet once inter ministerial discussions are completed. The ministry of mines is in discussion with the ministry of commerce and industry.”
He told BS “The basic idea is to have a single agency accountable for the illegalities that arise in the iron ore trade.”
The official said “The setting up of a canalising agency would act as a short-term solution until we put in place mechanisms to improve poor last-mile governance in mineral-rich states, the basic reason for illegal mining.”
The report added that the government is considering the recommendation on a ban on exports in the context of the export import policy.
Currently, iron ore exporting companies enter independent bilateral deals with foreign entities. If the canalising proposal comes through, big exporters such as Sesa Goa, Fomento Resources, MSPL Ltd and VM Salgaokar & Bro would be forced to execute these contracts through a government owned company such as MMTC, NMDC or State Trading Corporation.
(Sourced from BS)
Friday, December 16, 2011
Sesa Goa first iron ore mining company to certify for SA 8000
Friday, 16 Dec 2011
Sesa Goa Limited has been certified to the stringent standards of Social Accountability 8000. This is a unique achievement as this is the first time that an iron ore company has been given the certification internationally.
Bureau Veritas, the international certifying agency for the Social Accountability 8000 Standard, has certified the 4 major divisions of Sesa Goa Ltd, which are
Iron Ore Division - All Mines: Exploration, Mining, Processing, Blending & Dispatch of Iron Ore
Pig Iron Division - Manufacture of Pir Iron
Met-Coke Division - Manufacturing of Metallurgical Coke
Ship Building Division - Design, Construction & Repair of Self Propelled & Dumb floating crafts/vessels of steel construction
The certifications issued on November 23rd 2011 for a period of 3 years have been given for complying with the best management practices in the work place, especially in the areas of understanding of global issues and social impact in the workplace. The parameters of the Standard include practices regarding child labour and the young worker, forced labour, health & safety, discrimination, remuneration, working hours etc.
(Sourced from Equity Bulls)
Sesa Goa Limited has been certified to the stringent standards of Social Accountability 8000. This is a unique achievement as this is the first time that an iron ore company has been given the certification internationally.
Bureau Veritas, the international certifying agency for the Social Accountability 8000 Standard, has certified the 4 major divisions of Sesa Goa Ltd, which are
Iron Ore Division - All Mines: Exploration, Mining, Processing, Blending & Dispatch of Iron Ore
Pig Iron Division - Manufacture of Pir Iron
Met-Coke Division - Manufacturing of Metallurgical Coke
Ship Building Division - Design, Construction & Repair of Self Propelled & Dumb floating crafts/vessels of steel construction
The certifications issued on November 23rd 2011 for a period of 3 years have been given for complying with the best management practices in the work place, especially in the areas of understanding of global issues and social impact in the workplace. The parameters of the Standard include practices regarding child labour and the young worker, forced labour, health & safety, discrimination, remuneration, working hours etc.
(Sourced from Equity Bulls)
Tuesday, November 22, 2011
India 2012 iron ore exports down by a third - Sesa Goa
Tuesday, 22 Nov 2011
Sesa Goa said that iron ore exports from India, usually the world's third biggest supplier of the steel making ingredient, may fall by a third to 65 to 70 million tonnes in the year to March 2012.
Mr PK Mukherjee MD of Sesa Goa said that Goa, which was the top exporter last year, may ship 45 to 50 million tonnes, down from 54.42 million tonnes in the year earlier period. He added that any mining ban in the state would hit exports from Goa.
Mr Mukherjee said that "If you see Goa's contribution, then you can work out what impact a ban can have on exports.”
(Sourced from Reuters)
Sesa Goa said that iron ore exports from India, usually the world's third biggest supplier of the steel making ingredient, may fall by a third to 65 to 70 million tonnes in the year to March 2012.
Mr PK Mukherjee MD of Sesa Goa said that Goa, which was the top exporter last year, may ship 45 to 50 million tonnes, down from 54.42 million tonnes in the year earlier period. He added that any mining ban in the state would hit exports from Goa.
Mr Mukherjee said that "If you see Goa's contribution, then you can work out what impact a ban can have on exports.”
(Sourced from Reuters)
Sunday, October 16, 2011
Sesa Goa denies excess iron ore production in Goa
Sunday, 16 Oct 2011
DHNS reported that Sesa Goa, one of the many leading iron ore exporters being investigated by the Shah Commission for irregular mining in Goa, denied it had violated regulations or made underhand political donations.
The Vedanta-owned company, which is India’s largest producer and exporter of iron ore in the private sector, said recent media reports against the company for excess production were false, motivated and baseless. The leading iron ore producer said it had permission to extract 4 million tonnes of iron ore from three sites at Codli, Dharbandora for the year 2006-07.
From the year 2007-08 permission was enhanced to 7 million tonnes for the same pits, the company said. “
It said “Production each year from the same sites has been within the permitted quantities.”
It added that like many other corporate houses in India, Sesa has indeed made donations to political parties but strictly in accordance with due process prescribed under law.
It denied impropriety or lack of transparency in the in its political donations and said it was unfortunate that certain activists and sections of media are ascribing motives to such political donations.
(Sourced from DHNS)
DHNS reported that Sesa Goa, one of the many leading iron ore exporters being investigated by the Shah Commission for irregular mining in Goa, denied it had violated regulations or made underhand political donations.
The Vedanta-owned company, which is India’s largest producer and exporter of iron ore in the private sector, said recent media reports against the company for excess production were false, motivated and baseless. The leading iron ore producer said it had permission to extract 4 million tonnes of iron ore from three sites at Codli, Dharbandora for the year 2006-07.
From the year 2007-08 permission was enhanced to 7 million tonnes for the same pits, the company said. “
It said “Production each year from the same sites has been within the permitted quantities.”
It added that like many other corporate houses in India, Sesa has indeed made donations to political parties but strictly in accordance with due process prescribed under law.
It denied impropriety or lack of transparency in the in its political donations and said it was unfortunate that certain activists and sections of media are ascribing motives to such political donations.
(Sourced from DHNS)
Saturday, October 8, 2011
Sesa Goa sales in July September quarter down by 15pct
Saturday, 08 Oct 2011
Vedanta Group firm Sesa Goa reported 14.84% YoY decline in sales of iron ore to 1.55 million tonnes during the quarter ended September 30, 2011.
The company had reported sales of 1.82 million tonnes during the corresponding quarter last fiscal.
However, it managed to achieve higher sales realisation from Karnataka during the quarter, at 0.71 million tonnes, vis-a-vis 0.45 million tonnes of iron ore sales in Q2 of FY'11.
During the quarter, Sesa Goa's sales from Goa went down by 9.78% to 0.83 million tonnes from 0.92 million tonnes last year.
In addition, the company's total production of iron ore went down by over 61% during the July-September quarter to 1.12 million tonnes, largely due to the apex court ban on mining in Karnataka.
It had reported total iron ore production of 2.88 million tonnes in Q2 last fiscal.
Sesa Goa said in a statement that sales were benefited by higher volumes in Karnataka prior to the imposition of a mining ban."
Currently, the company does not produce any iron ore from Karnataka, following a ban imposed by the apex court in August on mining in the state.
(Sourced from PTI)
Vedanta Group firm Sesa Goa reported 14.84% YoY decline in sales of iron ore to 1.55 million tonnes during the quarter ended September 30, 2011.
The company had reported sales of 1.82 million tonnes during the corresponding quarter last fiscal.
However, it managed to achieve higher sales realisation from Karnataka during the quarter, at 0.71 million tonnes, vis-a-vis 0.45 million tonnes of iron ore sales in Q2 of FY'11.
During the quarter, Sesa Goa's sales from Goa went down by 9.78% to 0.83 million tonnes from 0.92 million tonnes last year.
In addition, the company's total production of iron ore went down by over 61% during the July-September quarter to 1.12 million tonnes, largely due to the apex court ban on mining in Karnataka.
It had reported total iron ore production of 2.88 million tonnes in Q2 last fiscal.
Sesa Goa said in a statement that sales were benefited by higher volumes in Karnataka prior to the imposition of a mining ban."
Currently, the company does not produce any iron ore from Karnataka, following a ban imposed by the apex court in August on mining in the state.
(Sourced from PTI)
Sunday, August 28, 2011
India's Sesa Goa says mining ban to hit performance
MUMBAI (Reuters) - India's Sesa Goa Ltd , owned by London-listed Vedanta Plc , said on Saturday its performance would be affected by an order from the country's top court extending a ban on mining to two more districts of a key iron ore producing state.
The Supreme Court on Friday extended the ban to Tumkur and Chitradurga districts of the southern Indian state Karnataka, Anita Shenoy, counsel for the Karnataka state government, told Reuters.
The two districts account for about seven percent of India's estimated 213 million tonnes of annual iron ore output, and the ban could hit exports from the world's third-largest supplier of the steel-making material.
Sesa Goa said in a statement the mining activities at the company's Chitradurga mine would have to be stopped with immediate effect as a result of the court order and that would "adversely affect" the performance of the company.
(sourced Reuters)
Monday, August 22, 2011
Sesa Goa hits 52-week low on a likely mining ban in Chitradurga, Tumkur
Mon,Aug 22, 2011
Sesa Goa slipped 4.85% at Rs. 211.75 at 11:03 IST on BSE on reports a panel appointed by the Supreme Court has recommended a ban on mining in iron ore-rich areas of Tumkur and Chitradurga in Karnataka.
Meanwhile, the BSE Sensex was down 31.10 points, or 0.19%, to 16,105.82.
On BSE, 2.59 lakh shares were traded in the counter as against an average daily volume of 4.08 lakh shares in the past one quarter.
The stock hit a low of Rs. 209.60 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs. 215 so far during the day. The stock had hit a 52-week high of Rs. 383.50 on 15 October 2010.
The stock had underperformed the market over the past one month until 19 August 2011, sliding 23.29% compared with the Sensex's 13.47% fall. The scrip had also underperformed the market in past one quarter, tumbling 24.81% as against 11.02% decline in the Sensex.
India's largest private sector iron ore exporter has an equity capital of Rs. 86.91 crore. Face value per share is Re 1.
According to reports, the Supreme Court's environment panel, Central Empowered Committee (CEC), on Friday, 19 August 2011, concurred with the Karnataka Lokayukta to report rampant illegal iron ore mining in Chitradurga and Tumkur districts and recommended a complete ban on private mining.
Sesa Goa has a mine is Chitradurga. Earlier this month, Sesa Goa's managing director, PK Mukherjee was quoted by the media as saying that the company is targeting six million tonne per annum (MTPA) of iron ore production from Karnataka in the current year.
Submitting the CEC's report to a bench of Chief Justice S H Kapadia and Justices Aftab Alam and Swatanter Kumar, adviser A D N Rao reportedly said the adverse impact on environment in Chitradurga and Tumkur districts was identical to the one witnessed in Bellary and advocated controlled mining as had been ordered by the apex court in Bellary.
On 29 July 2011, the apex Court had suspended all mining activities in Bellary district of Karnataka, observing that extraction of iron ore would not be allowed at the cost of environment degradation.
Reports suggest that the court has issued notice to the Karnataka government and sought its response within a week to the CEC's recommendation that mining activity be completely banned in Chitradurga and Tumkur districts before putting in place an interim arrangement on the lines of the one in Bellary district, where mining is done by public sector undertakings meant to meet the requirement of the domestic steel industry.
Sesa Goa's consolidated net profit slumped 35.4% to Rs. 840.59 crore on 12.5% fall in net sales to Rs. 2094.74 crore in Q1 June 2011 over Q1 June 2010.
Sesa Goa is India's largest producer and exporter of iron ore in the private sector and is on course to be in the league of top four iron ore producing companies in the world. Apart from iron ore it also produces pig iron and metallurgical coke.
Sesa Goa slipped 4.85% at Rs. 211.75 at 11:03 IST on BSE on reports a panel appointed by the Supreme Court has recommended a ban on mining in iron ore-rich areas of Tumkur and Chitradurga in Karnataka.
Meanwhile, the BSE Sensex was down 31.10 points, or 0.19%, to 16,105.82.
On BSE, 2.59 lakh shares were traded in the counter as against an average daily volume of 4.08 lakh shares in the past one quarter.
The stock hit a low of Rs. 209.60 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs. 215 so far during the day. The stock had hit a 52-week high of Rs. 383.50 on 15 October 2010.
The stock had underperformed the market over the past one month until 19 August 2011, sliding 23.29% compared with the Sensex's 13.47% fall. The scrip had also underperformed the market in past one quarter, tumbling 24.81% as against 11.02% decline in the Sensex.
India's largest private sector iron ore exporter has an equity capital of Rs. 86.91 crore. Face value per share is Re 1.
According to reports, the Supreme Court's environment panel, Central Empowered Committee (CEC), on Friday, 19 August 2011, concurred with the Karnataka Lokayukta to report rampant illegal iron ore mining in Chitradurga and Tumkur districts and recommended a complete ban on private mining.
Sesa Goa has a mine is Chitradurga. Earlier this month, Sesa Goa's managing director, PK Mukherjee was quoted by the media as saying that the company is targeting six million tonne per annum (MTPA) of iron ore production from Karnataka in the current year.
Submitting the CEC's report to a bench of Chief Justice S H Kapadia and Justices Aftab Alam and Swatanter Kumar, adviser A D N Rao reportedly said the adverse impact on environment in Chitradurga and Tumkur districts was identical to the one witnessed in Bellary and advocated controlled mining as had been ordered by the apex court in Bellary.
On 29 July 2011, the apex Court had suspended all mining activities in Bellary district of Karnataka, observing that extraction of iron ore would not be allowed at the cost of environment degradation.
Reports suggest that the court has issued notice to the Karnataka government and sought its response within a week to the CEC's recommendation that mining activity be completely banned in Chitradurga and Tumkur districts before putting in place an interim arrangement on the lines of the one in Bellary district, where mining is done by public sector undertakings meant to meet the requirement of the domestic steel industry.
Sesa Goa's consolidated net profit slumped 35.4% to Rs. 840.59 crore on 12.5% fall in net sales to Rs. 2094.74 crore in Q1 June 2011 over Q1 June 2010.
Sesa Goa is India's largest producer and exporter of iron ore in the private sector and is on course to be in the league of top four iron ore producing companies in the world. Apart from iron ore it also produces pig iron and metallurgical coke.
Saturday, August 13, 2011
Sesa Goa and Elenilto to jointly invest in Western Cluster Ltd
Saturday, 13 Aug 2011 | By Bloomberg
Bloomberg reported that Sesa Goa Limited and Elenilto Minerals & Mining LLC will jointly invest more than USD 2.6 billion in Liberia's Western Cluster Limited as rising demand for the steelmaking ingredient boosts prices.
Elenilto's share of investment in the iron ore company will be USD 77 million. The Liberian government will receive USD 41 million from the partnership after ratifying the Mineral Development Agreement.
Liberia, the West African nation rebuilding its economy after civil wars between 1989 and 2003, is expanding its iron ore industry after an increase in Asian demand pushed prices up 43% in 2010. OAO Severstal is developing the Putu ore project in the country, while Sable Mining Africa Limited said in June it acquired a stake in the Kpo Range exploration permit.
Sesa Goa, a unit of London listed Vedanta Resources Plc, said on August 7th 2011 that it would buy 51% of Western Cluster for USD 90 million. Western Cluster plans to develop a project that includes iron ore deposits and transport infrastructure to export the material.
According to The Steel Index, iron ore with 62% iron content arriving at China's Tianjin Port is trading at USD 177.80 a tonne. Prices have gained 4.5% in 2011.
Bloomberg reported that Sesa Goa Limited and Elenilto Minerals & Mining LLC will jointly invest more than USD 2.6 billion in Liberia's Western Cluster Limited as rising demand for the steelmaking ingredient boosts prices.
Elenilto's share of investment in the iron ore company will be USD 77 million. The Liberian government will receive USD 41 million from the partnership after ratifying the Mineral Development Agreement.
Liberia, the West African nation rebuilding its economy after civil wars between 1989 and 2003, is expanding its iron ore industry after an increase in Asian demand pushed prices up 43% in 2010. OAO Severstal is developing the Putu ore project in the country, while Sable Mining Africa Limited said in June it acquired a stake in the Kpo Range exploration permit.
Sesa Goa, a unit of London listed Vedanta Resources Plc, said on August 7th 2011 that it would buy 51% of Western Cluster for USD 90 million. Western Cluster plans to develop a project that includes iron ore deposits and transport infrastructure to export the material.
According to The Steel Index, iron ore with 62% iron content arriving at China's Tianjin Port is trading at USD 177.80 a tonne. Prices have gained 4.5% in 2011.
India iron ore production down by 4pct in FY 2011 - Mr Dinsha Patel
Saturday, 13 Aug 2011
India’s mines minister Mr Dinsha Patel said that production of iron ore, a vital steel-making raw material, in the country fell by 4.81% in 2010-11 to 208.11 million tones.
Mr Patel quoting provisional figures from the Indian Bureau of Mines informed the parliament that of this, the private sector accounted for over 70% of iron ore production. He added that India produced 218.64 million tonne of iron ore in 2009-10.
Among the states, Orissa accounted for over 36% of India's total iron ore production, at 74.96 million tonne. Karnataka's output of 37.66 million tonne accounted for another 18.09% and Goa's 36.48 million tonne output was 17.52% of total production.
The data shows that all three states witnessed a decline in iron ore production last fiscal vis-a-vis their respective production figures for 2009-10.
Speaking on consumption, Patel said that steel and allied industries consumed over 118 million tonne of ore in 2009-10, while the cement industry accounted for total consumption of 11.66 million tonne during the year. However, the Mines Minister's reply did not give any reasons for the decline in FY'11.
(Sourced from ET)
India’s mines minister Mr Dinsha Patel said that production of iron ore, a vital steel-making raw material, in the country fell by 4.81% in 2010-11 to 208.11 million tones.
Mr Patel quoting provisional figures from the Indian Bureau of Mines informed the parliament that of this, the private sector accounted for over 70% of iron ore production. He added that India produced 218.64 million tonne of iron ore in 2009-10.
Among the states, Orissa accounted for over 36% of India's total iron ore production, at 74.96 million tonne. Karnataka's output of 37.66 million tonne accounted for another 18.09% and Goa's 36.48 million tonne output was 17.52% of total production.
The data shows that all three states witnessed a decline in iron ore production last fiscal vis-a-vis their respective production figures for 2009-10.
Speaking on consumption, Patel said that steel and allied industries consumed over 118 million tonne of ore in 2009-10, while the cement industry accounted for total consumption of 11.66 million tonne during the year. However, the Mines Minister's reply did not give any reasons for the decline in FY'11.
(Sourced from ET)
Monday, August 8, 2011
Vedanta Enters Scramble for African Ore
Monday, August8, 2011
By Alex Macdonald, WSJ
By Alex Macdonald, WSJ
LONDON—U.K.-listed, India-focused Vedanta Resources PLC has become the latest miner to enter the fray over a fast-emerging iron-ore hub in West Africa by purchasing a majority stake in Western Cluster Ltd., a Liberian iron-ore exploration company.
Vedanta, through its Sesa Goa Ltd. iron-ore unit, has agreed to purchase a 51% stake in Western Cluster Ltd. from Elenilto Minerals & Mining LLC for $90 million in cash. WCL won the bid for an iron-ore project in Liberia that has long-life potential, with iron-ore resources exceeding one billion metric tons and saleable product of 330 million tons.
With this purchase, Vedanta, a FTSE-100 company, is joining an iron-ore investment bonanza that is taking place in West Africa. Mining companies and steel producers from around the world are flocking to the region to develop large deposits of the steelmaking raw ingredient to export it to fast-growing emerging economies such as China, where demand for the product remains high due to the fast-paced process of urbanization and industrialization.
ArcelorMittal, the world's largest steel producer and a large iron-ore producer, has already started mining iron ore from its project in Liberia this year and plans to ship its first commercial iron ore in the third quarter of this year.
Brazil's Vale SA and Anglo-Australian giant Rio Tinto PLC, the world's largest and second-largest iron-ore producers respectively, are also present in neighboring Guinea, where they're investing billions of dollars in mining projects and infrastructure to transport high-quality iron ore to the coast for export.
"We are highly delighted with this opportunity to consolidate our iron ore business," said P.K. Mukherjee, Sesa Goa's managing director. "The Western Cluster project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa."
Sesa Goa said the project is in close proximity to existing port infrastructure and access to land for a railway corridor. The company said the investment will establish a strong presence in the upcoming ironore hub catering to seaborne iron ore trade.
Vedanta is already present in Africa through copper and zinc investments in Zambia, Namibia and South Africa.
Vedanta, through its Sesa Goa Ltd. iron-ore unit, has agreed to purchase a 51% stake in Western Cluster Ltd. from Elenilto Minerals & Mining LLC for $90 million in cash. WCL won the bid for an iron-ore project in Liberia that has long-life potential, with iron-ore resources exceeding one billion metric tons and saleable product of 330 million tons.
With this purchase, Vedanta, a FTSE-100 company, is joining an iron-ore investment bonanza that is taking place in West Africa. Mining companies and steel producers from around the world are flocking to the region to develop large deposits of the steelmaking raw ingredient to export it to fast-growing emerging economies such as China, where demand for the product remains high due to the fast-paced process of urbanization and industrialization.
ArcelorMittal, the world's largest steel producer and a large iron-ore producer, has already started mining iron ore from its project in Liberia this year and plans to ship its first commercial iron ore in the third quarter of this year.
Brazil's Vale SA and Anglo-Australian giant Rio Tinto PLC, the world's largest and second-largest iron-ore producers respectively, are also present in neighboring Guinea, where they're investing billions of dollars in mining projects and infrastructure to transport high-quality iron ore to the coast for export.
"We are highly delighted with this opportunity to consolidate our iron ore business," said P.K. Mukherjee, Sesa Goa's managing director. "The Western Cluster project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa."
Sesa Goa said the project is in close proximity to existing port infrastructure and access to land for a railway corridor. The company said the investment will establish a strong presence in the upcoming ironore hub catering to seaborne iron ore trade.
Vedanta is already present in Africa through copper and zinc investments in Zambia, Namibia and South Africa.
Sunday, August 7, 2011
Sesa Goa to buy 51% in Liberian iron ore firm for $90m
August6, 2011 | Source PTI
Sesa Goa , a subsidiary of Vedanta Resources, today said it will buy 51% stake in an iron ore making firm in Liberia for USD 90 million in an all-cash deal.
"Sesa Goa has agreed to acquire 51% stake in Western Cluster Ltd, Liberia for a cash consideration of USD 90 million," the Goa-based iron ore miner said in a filing to the Bombay Stock Exchange (BSE).
The acquisition, which is subject to ratification by the Liberia Legislature, is expected to help the Anil Agarwal-led Vedanta Resources' subsidiary to become a significant player in the West African iron ore hub.
Located in Western part of Liberia and spread over 270 sq km area, the company has assets having long mine-life with an estimated reserve of over 1.05 billion tonne iron ore. The deposits are located close to the coast along Monrovia to Mano River.
"We are highly delighted with this opportunity to consolidate our iron ore business. The Western Cluster Project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa," Sesa Goa managing director PK Mukherjee said.
Western Cluster has concessions to mine the Mano River Iron Ore Deposits, the Western portion of the Bomi Hills Iron Ore Deposits and the Bea Mountain Iron Ore Deposits.
Western Cluster is owned by Elenilto Minerals and Mining LLC, which operates large-scale iron ore, gold, copper and other minerals exploration and mining activities in Africa and Europe. Elenilto has more than 100 exploration and mining licences with over 10,000 sq km area in Africa and Europe.
Sesa Goa , a subsidiary of Vedanta Resources, today said it will buy 51% stake in an iron ore making firm in Liberia for USD 90 million in an all-cash deal.
"Sesa Goa has agreed to acquire 51% stake in Western Cluster Ltd, Liberia for a cash consideration of USD 90 million," the Goa-based iron ore miner said in a filing to the Bombay Stock Exchange (BSE).
The acquisition, which is subject to ratification by the Liberia Legislature, is expected to help the Anil Agarwal-led Vedanta Resources' subsidiary to become a significant player in the West African iron ore hub.
Located in Western part of Liberia and spread over 270 sq km area, the company has assets having long mine-life with an estimated reserve of over 1.05 billion tonne iron ore. The deposits are located close to the coast along Monrovia to Mano River.
"We are highly delighted with this opportunity to consolidate our iron ore business. The Western Cluster Project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa," Sesa Goa managing director PK Mukherjee said.
Western Cluster has concessions to mine the Mano River Iron Ore Deposits, the Western portion of the Bomi Hills Iron Ore Deposits and the Bea Mountain Iron Ore Deposits.
Western Cluster is owned by Elenilto Minerals and Mining LLC, which operates large-scale iron ore, gold, copper and other minerals exploration and mining activities in Africa and Europe. Elenilto has more than 100 exploration and mining licences with over 10,000 sq km area in Africa and Europe.
Tuesday, July 26, 2011
Indian iron ore mining mess - Mines closure in Karnataka may hit steel mills
Tuesday, 26 Jul 2011 | sourced ET
Last week, when Sesa Goa cut its revenue guidance for the current fiscal year due to tight ore supply from Karnataka, it spoke volumes about production problem at one of the largest mineral producing states of the country.
Karnataka, which accounts for a third of India's iron ore output, had to suspend operations in about 50 mines affecting supplies to a host of steelmakers and prompting large players such as JSW Steel and TATA Metaliks to consider a stoppage in production.
The shuttering of the mines followed a survey by a court appointed panel that found most of these mines, owned by private owners, operating without clear boundary sites, encroaching on forest land and dumping mineral waste outside their mines. This was in addition to an earlier directive by the state government to ban exports.
The closure has led to uncertainty about supplies of about 40 million tonnes of iron ore that comes from the region. Karnataka supplies iron ore to severalsteel plants such as JSW Steel, TATA Metaliks, Jindal Saw, Kirloskar Ferrous Industries and Kalyani Steel.
In his representation to the Karnataka government, Mr Vinod Nowal CEO of JSW Steel said that as the company's daily iron ore requirements is 53,000 tonnes and the company has stock of only 150,000 tonnes, operations at the plant could likely be stopped.
TATA Metaliks, the largest producer of foundry grade pig iron which supplies to automobile and engineering companies, said the closure notices issued by the department of mines and geology is ultra vires the Supreme Court order dated May 6th 2011, which did not stipulate stoppage of mining activities.
Mr Sudhin Mitter vice president wrote to Central Empowered Committee chairman Mr PV Jayakrishnan that "Iron ore has no substitute for the production of pig iron and our stock level will last for a very short period. The abrupt closure of mining in Bellary will result in complete stoppage of production at the plant.”
According to the Federation of Indian Mineral Industries, iron ore shipments from India, the world's third largest exporter of the mineral, will fall to 64 million tones in the current fiscal year. Karnataka has 9 billion tonnes of reserves accounting for nearly 38% of India's deposits. The crackdown on illegal mining has come at a time when Karnataka has emerged as a much sought-after location for major global steel sector companies planning to make inroads into India.
Last week, when Sesa Goa cut its revenue guidance for the current fiscal year due to tight ore supply from Karnataka, it spoke volumes about production problem at one of the largest mineral producing states of the country.
Karnataka, which accounts for a third of India's iron ore output, had to suspend operations in about 50 mines affecting supplies to a host of steelmakers and prompting large players such as JSW Steel and TATA Metaliks to consider a stoppage in production.
The shuttering of the mines followed a survey by a court appointed panel that found most of these mines, owned by private owners, operating without clear boundary sites, encroaching on forest land and dumping mineral waste outside their mines. This was in addition to an earlier directive by the state government to ban exports.
The closure has led to uncertainty about supplies of about 40 million tonnes of iron ore that comes from the region. Karnataka supplies iron ore to severalsteel plants such as JSW Steel, TATA Metaliks, Jindal Saw, Kirloskar Ferrous Industries and Kalyani Steel.
In his representation to the Karnataka government, Mr Vinod Nowal CEO of JSW Steel said that as the company's daily iron ore requirements is 53,000 tonnes and the company has stock of only 150,000 tonnes, operations at the plant could likely be stopped.
TATA Metaliks, the largest producer of foundry grade pig iron which supplies to automobile and engineering companies, said the closure notices issued by the department of mines and geology is ultra vires the Supreme Court order dated May 6th 2011, which did not stipulate stoppage of mining activities.
Mr Sudhin Mitter vice president wrote to Central Empowered Committee chairman Mr PV Jayakrishnan that "Iron ore has no substitute for the production of pig iron and our stock level will last for a very short period. The abrupt closure of mining in Bellary will result in complete stoppage of production at the plant.”
According to the Federation of Indian Mineral Industries, iron ore shipments from India, the world's third largest exporter of the mineral, will fall to 64 million tones in the current fiscal year. Karnataka has 9 billion tonnes of reserves accounting for nearly 38% of India's deposits. The crackdown on illegal mining has come at a time when Karnataka has emerged as a much sought-after location for major global steel sector companies planning to make inroads into India.
Thursday, July 21, 2011
Sesa Goa posts net profit of Rs 840 cr in Q1
Thu,July 21, 2011 |Press Trust of India
Mumbai: Iron ore producer and exporter Sesa Goa today announced a consolidated net profit of Rs 840.59 crore in the first quarter ended June 30, 2011.
The Vedanta Group company had a consolidated net profit of Rs 1,301.79 crore in the June quarter last fiscal, Sesa Goa said in a filing with the Bombay Stock Exchange (BSE).
The results were not comparable consequent to merger of erstwhile subsidiary Sesa Industries with the company, it said.
The group posted consolidated total income of Rs 2,260.95 crore in the quarter under review whereas the same was at Rs 2,574.02 crore during the same period previous year, it said.
The figures of the pig iron segment were incorporated in the company's results on standalone basis from the quarter ended March 31, 2011.
The figures for the quarter ended June 30, 2011 are therefore not comparable with those or the corresponding quarter of the previous period on standalone basis.
For the three-month period ended June 30, 2011, it earned a standalone net profit of Rs 672.98 crore whereas the same was Rs 1,025.51 crore in the June quarter previous year.
Its standalone total income stood at Rs 1,831.68 crore in the period under review whereas the same was Rs 2,067.99 crore during the same period last fiscal.
Shares of the company closed at Rs 278.05, down 2.63% from previous close on the BSE.
Mumbai: Iron ore producer and exporter Sesa Goa today announced a consolidated net profit of Rs 840.59 crore in the first quarter ended June 30, 2011.
The Vedanta Group company had a consolidated net profit of Rs 1,301.79 crore in the June quarter last fiscal, Sesa Goa said in a filing with the Bombay Stock Exchange (BSE).
The results were not comparable consequent to merger of erstwhile subsidiary Sesa Industries with the company, it said.
The group posted consolidated total income of Rs 2,260.95 crore in the quarter under review whereas the same was at Rs 2,574.02 crore during the same period previous year, it said.
The figures of the pig iron segment were incorporated in the company's results on standalone basis from the quarter ended March 31, 2011.
The figures for the quarter ended June 30, 2011 are therefore not comparable with those or the corresponding quarter of the previous period on standalone basis.
For the three-month period ended June 30, 2011, it earned a standalone net profit of Rs 672.98 crore whereas the same was Rs 1,025.51 crore in the June quarter previous year.
Its standalone total income stood at Rs 1,831.68 crore in the period under review whereas the same was Rs 2,067.99 crore during the same period last fiscal.
Shares of the company closed at Rs 278.05, down 2.63% from previous close on the BSE.
Tuesday, July 19, 2011
Indian mining majors look to diversify into steel making
Tuesday, 19 Jul 2011
BL reported that large miners such as NMDC, MOIL and Sesa Goa are set to transform into metal and alloy producers as part of their forward integration strategy.
Analysts feel there is a rush to set up steel plants as mineral rich States such as Karnataka and Chattisgarh are looking at value addition as a pre condition for grant of new mining leases and renewal of existing ones.
Mr Bhavesh Chauhan analyst at Angel Broking Ltd said that “Mining firms realise that if they have to get additional mining leases, they need to set up steel plants.”
Miners, however, look at diversification as the next logical step for them, while analysts feel that the move would hurt the miners' profitability.
NMDC's plans
NMDC, the country's largest miner, is in the process of setting up a 3 million tonnes per annum unit with an investment of INR 15,000 crore at Nagarnar in Chhattisgarh. NMDC has also formed a joint venture with Russian steel maker OJSA Severstal to set up a 5 million tonnes per annum specialised steel unit in Karnataka.
An analyst said that “Profitability, the world over is much stronger in the mining business as compared to the processing business. In case of these firms, the impact will be felt over the next couple of years, when their proposed steel units will be commissioned.”
Sesa Goa's buy
Sesa Goa, which operates major mines in Karnataka, recently acquired the assets of Bellary Steel and Alloys Ltd in Bellary for INR 220 crore. BSAL was building a 0.5 million tonnes per annum unit and has 700 acres of land in Bellary.
However, the BSAL acquisition has been challenged by JSW Steel in Supreme Court, which has directed the parties concerned to maintain status-quo till the next hearing.
The Vedanta Group company is expanding its pig iron capacity in Goa, besides planning to set up two small steel mills ranging from 1 to 1.5 million tonnes per annum in Orissa and Jharkhand, where it has prospecting licence to carry out mining operations.
MOIL's units
MOIL, the country's largest manganese miner, is in the process setting up two ferroalloy units through joint ventures with SAIL and RINL. It is likely to be operational in June 2012. Ferro alloy is a key raw material for producing steel.
The proposed ferroalloy plant with SAIL in Chhattisgarh will have a capacity of 106,000 tonne, while the one with RINL in Andhra Pradesh will produce 57,500 tonnes.
(sourced from BL)
BL reported that large miners such as NMDC, MOIL and Sesa Goa are set to transform into metal and alloy producers as part of their forward integration strategy.
Analysts feel there is a rush to set up steel plants as mineral rich States such as Karnataka and Chattisgarh are looking at value addition as a pre condition for grant of new mining leases and renewal of existing ones.
Mr Bhavesh Chauhan analyst at Angel Broking Ltd said that “Mining firms realise that if they have to get additional mining leases, they need to set up steel plants.”
Miners, however, look at diversification as the next logical step for them, while analysts feel that the move would hurt the miners' profitability.
NMDC's plans
NMDC, the country's largest miner, is in the process of setting up a 3 million tonnes per annum unit with an investment of INR 15,000 crore at Nagarnar in Chhattisgarh. NMDC has also formed a joint venture with Russian steel maker OJSA Severstal to set up a 5 million tonnes per annum specialised steel unit in Karnataka.
An analyst said that “Profitability, the world over is much stronger in the mining business as compared to the processing business. In case of these firms, the impact will be felt over the next couple of years, when their proposed steel units will be commissioned.”
Sesa Goa's buy
Sesa Goa, which operates major mines in Karnataka, recently acquired the assets of Bellary Steel and Alloys Ltd in Bellary for INR 220 crore. BSAL was building a 0.5 million tonnes per annum unit and has 700 acres of land in Bellary.
However, the BSAL acquisition has been challenged by JSW Steel in Supreme Court, which has directed the parties concerned to maintain status-quo till the next hearing.
The Vedanta Group company is expanding its pig iron capacity in Goa, besides planning to set up two small steel mills ranging from 1 to 1.5 million tonnes per annum in Orissa and Jharkhand, where it has prospecting licence to carry out mining operations.
MOIL's units
MOIL, the country's largest manganese miner, is in the process setting up two ferroalloy units through joint ventures with SAIL and RINL. It is likely to be operational in June 2012. Ferro alloy is a key raw material for producing steel.
The proposed ferroalloy plant with SAIL in Chhattisgarh will have a capacity of 106,000 tonne, while the one with RINL in Andhra Pradesh will produce 57,500 tonnes.
(sourced from BL)
Wednesday, March 23, 2011
India's iron ore exports seen less than 100 mln T-Sesa Goa
Wed Mar 23, 2011 6:13am GMT
* Spot iron ore prices have fallen 14 pct from mid-Feb
* Slower China, Japan demand weighing on prices
BEIJING, March 23 (Reuters) - Iron ore exports from India, the world's third-largest supplier of the steelmaking material, will be less than 100 million tonnes in the next fiscal year starting April if prices stay at current levels, a top executive at Sesa Goa said on Wednesday.
India usually exports about half of its annual iron ore output of around 200 million tonnes, most of them going to China.
"Iron ore exports from India will be less than 100 million tonnes if prices stay at current levels," P.K. Mukherjee, managing director of top Indian iron ore exporter Sesa Goa, told reporters at an industry conference.
Spot iron ore prices .IO62-CNI=SI have fallen 14 percent since hitting record highs in mid-February as thin steel demand in top consumer China slowed buying by Chinese steel mills.
Worries that demand from disaster-hit Japan may also slow in the near term before a reconstruction-led rebound has also weighed on iron ore prices.
Iron ore prices surged more than 40 percent in 2010 on booming demand from China, prodding global producers in Brazil and Australia to boost output.
But India's iron ore exports fell for a seventh straight month in January because of a ban on shipments from its key Karnataka state and exports are seen falling further due to a four-fold rise in export tax.
India's iron ore exports are likely to fall 35 percent to about 58 million tonnes in the next fiscal year due to the curbs and the increase in taxes, R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries, said earlier this month.
* Slower China, Japan demand weighing on prices
BEIJING, March 23 (Reuters) - Iron ore exports from India, the world's third-largest supplier of the steelmaking material, will be less than 100 million tonnes in the next fiscal year starting April if prices stay at current levels, a top executive at Sesa Goa said on Wednesday.
India usually exports about half of its annual iron ore output of around 200 million tonnes, most of them going to China.
"Iron ore exports from India will be less than 100 million tonnes if prices stay at current levels," P.K. Mukherjee, managing director of top Indian iron ore exporter Sesa Goa, told reporters at an industry conference.
Spot iron ore prices .IO62-CNI=SI have fallen 14 percent since hitting record highs in mid-February as thin steel demand in top consumer China slowed buying by Chinese steel mills.
Worries that demand from disaster-hit Japan may also slow in the near term before a reconstruction-led rebound has also weighed on iron ore prices.
Iron ore prices surged more than 40 percent in 2010 on booming demand from China, prodding global producers in Brazil and Australia to boost output.
But India's iron ore exports fell for a seventh straight month in January because of a ban on shipments from its key Karnataka state and exports are seen falling further due to a four-fold rise in export tax.
India's iron ore exports are likely to fall 35 percent to about 58 million tonnes in the next fiscal year due to the curbs and the increase in taxes, R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries, said earlier this month.
Thursday, January 27, 2011
Sesa Goa secures stay order against Bellary sell off
Thursday, 27 Jan 2011
Press Trust of India reported that Vedanta Group firm Sesa Goa has secured a stay order from the Delhi High Court against the decision taken by Industrial Financial Corporation of India on Bellary Steel sell off in which JSW Steel was declared the highest bidder.
According to the Delhi High Court website, next hearing has been scheduled on February 22 on the matter.
Mr PK Mukherjee MD of Sesa Goa told PTI “Our dispute is against the process followed by IFCI in the bidding. We have already taken up the matter with the Delhi High Court, which stayed the sale (order) last week.”
He told “Our dispute is with the process. We were the only qualified bidder initially and declared successful bidder verbally. Our people were told to come after lunch to collect the allotment letter. When we came back after lunch, we were told that there is another bidder and that bid is only marginally higher than our price.”
He added that “The stay order came after we filed a petition and next hearing will be in mid February.”
Mr Mukherjee while clarifying that Sesa Goa does not have any issues against JSW Steel said “We have no problems with JSW at all... Our dispute is with the process, which IFCI followed.”
Last month, a consortium of lenders led by IFCI had declared JSW Steel as the highest bidder for acquiring the assets of Bellary Steel and Alloys, where Sesa Goa was the only other qualified contender. While Sesa Goa's bid was at INR 206 crore, slightly more than the reserve price of INR 205.63 crore, JSW quoted INR 210 crore.
(Sourced from PTI)
Press Trust of India reported that Vedanta Group firm Sesa Goa has secured a stay order from the Delhi High Court against the decision taken by Industrial Financial Corporation of India on Bellary Steel sell off in which JSW Steel was declared the highest bidder.
According to the Delhi High Court website, next hearing has been scheduled on February 22 on the matter.
Mr PK Mukherjee MD of Sesa Goa told PTI “Our dispute is against the process followed by IFCI in the bidding. We have already taken up the matter with the Delhi High Court, which stayed the sale (order) last week.”
He told “Our dispute is with the process. We were the only qualified bidder initially and declared successful bidder verbally. Our people were told to come after lunch to collect the allotment letter. When we came back after lunch, we were told that there is another bidder and that bid is only marginally higher than our price.”
He added that “The stay order came after we filed a petition and next hearing will be in mid February.”
Mr Mukherjee while clarifying that Sesa Goa does not have any issues against JSW Steel said “We have no problems with JSW at all... Our dispute is with the process, which IFCI followed.”
Last month, a consortium of lenders led by IFCI had declared JSW Steel as the highest bidder for acquiring the assets of Bellary Steel and Alloys, where Sesa Goa was the only other qualified contender. While Sesa Goa's bid was at INR 206 crore, slightly more than the reserve price of INR 205.63 crore, JSW quoted INR 210 crore.
(Sourced from PTI)
Tuesday, January 25, 2011
Sesa Goa Q3 profit up by 29pct
Tuesday, 25 Jan 2011
India’s biggest iron ore exporter Sesa Goa Ltd posted a 29% gain in third quarter profit aided by higher prices of the steelmaking raw material.
Sesa Goa group net income rose to INR 10.7 billion (USD 234 million) in the three months ended December 31 from INR 8.28 billion a year earlier. The average profit estimate of 12 analyst surveyed by Bloomberg was INR 10.4 billion. Sales climbed 22% to INR 25 billion.
Total income increased by 21.57% to stand at INR 23,768.20 million for the quarter ended December 31st 2010 where as the same was at INR 19,551.30 million for the quarter ended December 31st 2009. ( sourced:Bloomberg)
India’s biggest iron ore exporter Sesa Goa Ltd posted a 29% gain in third quarter profit aided by higher prices of the steelmaking raw material.
Sesa Goa group net income rose to INR 10.7 billion (USD 234 million) in the three months ended December 31 from INR 8.28 billion a year earlier. The average profit estimate of 12 analyst surveyed by Bloomberg was INR 10.4 billion. Sales climbed 22% to INR 25 billion.
Total income increased by 21.57% to stand at INR 23,768.20 million for the quarter ended December 31st 2010 where as the same was at INR 19,551.30 million for the quarter ended December 31st 2009. ( sourced:Bloomberg)
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