Sesa Goa on Saturday said it will stop mining in Karnataka's
Chitradurga with immediate effect, following the Supreme Court's order banning
mining in Chitradurga and Tumkur districts.
“It will adversely affect to some extent the performance of
the company,” it said in a filing to the Bombay Stock Exchange, while informing
about suspension of its mining activities in Chitradurga. It added that “the
annual permitted capacity of the said mine (in Chitradurga) at present is 6
million tonnes”.
The Central Empowered Committee in its recommendations to
the bench on August 19 said that the mining operation was going on recklessly
and in an environmentally unsustainable manner with the prime objective to
exploit the iron ore mines merely for short-term gains.
Sesa Goa, which has produced 18.8 million tonnes of iron ore
in the last fiscal, had said earlier that ban on mining in Chitradurga will
affect its gross revenues by up to 15 per cent.
The company, while announcing its first quarter results, had
also lowered its sales guidance for the year to 15-16 per cent from the earlier
projection of 25 per cent, amid uncertainty over resumption of iron ore exports
from Karnataka. Industry sources said suspension of mining in Chitradurga will
also affect company's expansion plans in Karnataka
Source: The Business Line
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