Sesa Goa aims to up iron ore production by 25% next fiscal

Sesa Goa aims to up iron ore production by 25% next fiscal

Panaji: Top iron ore exporter Sesa Goa is set to produce 20 million tonnes of iron ore in the financial year ended March, and aims to expand it by up to 25% in 2010-11, the company’s head said on Saturday.

“Our sales may be 20 million tonnes plus (in 2009-10 to end in March)", PK Mukherjee, managing director of Sesa Goa said on the sidelines of a steel conference in Goa.

In the next financial year starting in April, there will be “20-25% volume growth delivered," he said.

Sesa Goa, a subsidiary of London-listed metal and mining group Vedanta Resources, is the largest iron ore exporter in India and has mines in Goa, Karnataka and Orissa.

Mukherjee said the company continued to aim for acquisitions of mines but did not give any further details.

Last year, in June, Sesa Goa acquired the mining assets of Dempo Group in Goa to boost its output of iron ore.

“We are a resource company, our appetite is always strong. We don’t choose (whether to acquire mines in India or overseas.) wherever it makes economic sense, we will go for a deal", he told reporters.

“Our cash is Rs80 billion ($1.7 billion). There is no allocation as such for acquisitions", Mukherjee said.

Speaking on rumours of a likely hike in iron ore export duty, Mukherjee said it could bring down India’s total exports of over 100 million tonnes.