CASE STUDIESBACK TO FARMING

Agriculture is considered to be the backbone of the Indian Economy. But today it is suffering due to various reasons, such as high input costs, low returns, shortage of skilled manpower, lack of interest in farming and inclination towards white -collar jobs. Agriculture in the state of Goa too is passing through the same turmoil. In the vicinity of SESA Goa's mining operations as well, lots of paddy fields were left barren for years and villagers were discouraged from farming. SESA's CSR group came up with a program called 'Back to Farming'. The main purpose was to assist the farming community in all possible manners, enabling them to resort back to their traditional means of livelihood (i.e. agriculture) and to promote sustainable agricultural livelihood. This project was launched in Wagona a hamlet of Kirlapal-Dabal Panchayat in the year 2005-06. Awareness programs and meetings of farmers and village panchayat members were organized. Officers of Zonal Agriculture Departments provided guidance on the best agricultural practices, improved technologies, hybrid seeds, proper application of fertilizers etc. Necessary farming materials like paddy seeds, organic manure, chemical fertilizers, irrigation facilities, fencing of fields etc. were distributed to farmers free of cost. The program helped farmers with getting Government subsidies for ploughing their fields by tractors and SESA contributed the remaining cost. The initiative also took care of the repairing of sluice gates, bandharas, bundhs etc.About 9ha of agricultural land was revived through this program, benefitting about 70 farmer families. The sown seeds have grown to give a lush green look owing to the efforts of the farmers and the assistance of SESA. This was a great achievement for the company as well as for the farmers of Wagona village, setting an example for other villages. Getting inspired by this, the farmers Associations of Cudnem & Navelim villages too approached SESA for similar assistance. The fields of these farmers were in a similar situation; hence SESA replicated the 'back to farming' program to benefit these villages as well

Sesa GoaBSE: 500295  |  NSE: SESAGOA  |  ISIN: INE205A01025  |  Mining/Minerals

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COMMENTS Management History Background Listing Locations Board Meetings AGM/EGM Dividends Bonus Rights Splits

Company History - Sesa Goa

YEAR EVENTS 1954 -Baron Ludovic Toeplitz lands in Goa. With the financial backing of an enterprising Italian, Alessandro, he acquires the Orosso Dongor Mining Concession in North Goa and starts a Company called Scambi Economici S.A. Goa 1955 -The Company renamed Sesa Goa Limitada is bought over jointly by Gewerkeshaft Exploration e Bergbau represented by Eugene Plotzki and by Ferromin S.p.A. of Italy ( a subsidiary of Finsider S.p.A. of the IRI Group) represented by Paolo Tradardi, both parties having equal shareholding 1957 -Another company started in Goa, Mingoa Sociedade Minieral Goesa S.a.r.l. is incorporated with Fiat of Torino as the principal shareholder. 1963 -Finsider S.p.A. acquires the West German interest in Sesa Goa Limitada and also all the shares of Mingoa. 1965 - With the application of the Companies Act 1956, to Goa, it was incorporated under the Act on 25th June, as a Private Limited Company under the name Sesa Goa Pvt. Ltd. It was wholly owned subsidiary of Istututo per la Recostruzion Industriale, an Italian Govt. controlled company. 1978 - 14,000 Bonus shares issued in prop. 2:3. 1979 - In April, another wholly owned subsidiary of Finsider S.P.A., Italy was also engaged in the mining and export of iron ore. Mingoa Pvt. Ltd., was amalgamated with the company. As per the Scheme of Amalgamation, 38,500 No. of equity shares of Rs 500 each were allotted to Finsider S.P.A., Italy without

payment in cash. 1981 - The Company was converted into a public limited company on 25th March. - During November, Finsider S.P.A., Italy offered for sale out of its holding in the Company 22,05,000 No. of equity shares of Rs 10 each at a premium of Rs 2.50 per share in the following manner: (i) 1,83,750 shares reserved for firm allotment to public financial institutions, (ii) 1,83,750 shares reserved for firm allotment to the business associates and employees of the Company and (iii) 18,37,500 shares to the public. 1984 - A beneficiation plant with a throughput capacity of 15 lakhs tonnes was being set up in two stages to improve the quality and marketability of the ore. 1986 - The first phase of the beneficiation plant and with a capacity of 7.5 lakh tonnes per year, was commissioned in January. - The Company decided to enter a new area of activity of information systems and services in collaboration with STET, the financial holding for electronics in the IRI Group. - 14,70,000 Bonus shares issued in prop. 2:5. 1987 - The ship building division suffered a setback due to labour problems with subcontractors resulting in delay in the completion of some of the vessels. - The Ship building division proposed to carry out a programme of phased investment to upgrade the shipyard's technological capability as also to increase its capacity. - The Company obtained initial registration for the manufacture of 60,000 tonnes of low phos pig iron at Navelim near Sanquelim in Goa.

- The Company obtained the necessary pollution clearance for the project and a final technological evaluation of the project was undertaken to maximise operational efficiencies in future. - A biotech pilot plant was set up in the mines for the treatment of tailing waste with micro organisms which feed on the mangniferous clay. - Along with indigenous stern gear, particularly the fishing of marine propellers, a separator tank capable of efficiently recovering iron ore fines from cyclone under-flows was developed. - Approval from Govt. was received for technology agreement for manufacture of a sophisticated fishing trawler based on drawings from a Norwegian Company and Technical collaboration with Fincantieri of Italy, member of the IRI group was entered into for the technological upgradation of the shipyard. 1988 - Sesa Seat Information Systems Pvt. Ltd., was incorporated in January, as a subsidiary of the Company. Effective 29th March, 1993, the Company ceased to be a subsidiary of the company. 1989 - The Company laid the foundation stone of the project to manufacture 1,50,000 tonnes per year of low phosphorus pig iron at Amona near Sanquelim in Goa. 1990 - On 11th January, the Company issued 6,48,270-12.5% secured partly convertible debentures of Rs 110 each. Of these, 6,17,400 debentures were offered to the equity shareholders on rights basis in the ratio of 1 debenture: 5 equity shares (all were taken up) and 30,870 debentures offered to the employees of the Company (all were taken up). - The convertible portion of Rs 60 per debenture was converted into 2 equity shares of Rs 10 each, at a premium of Rs 20 per

share on 1st February, 1992. - The amount of Rs 50 representing the non-convertible portion will be redeemed in 3 instalments of Rs 15, Rs 15 and Rs 20 at the expiry of the 6th, 7th and 8th year respectively from the date of allotment. - With a view to manufacturing indigenous coke, the Company in collaboration with Kembla Coal & Coke Pvt. Ltd., Australia set up Sesa Kembla Coke Co. Pvt. Ltd., Kembla Coal & Coke Pvt. Ltd., Australia is to participate to the extent of 40% in the share capital of the new venture through its subsidiary Kembla Goa holdings Ltd. 1991 - 12,96,540 No. of equity shares allotted (prem. Rs 20 per share) in conversion of debs. Another 8,64,360 No. of equity shares (prem. Rs 20 per share) allotted to Finalder international S.A. Luxembourg to maintain their equity stake in this company at the existing level. 1992 - The pig iron plant was commissioned. A new Company in the name of Sesa Industries Ltd., was set up for implementing expansion and diversification plans in the steel related areas. - The Sesa Industries Ltd., set up a second pig iron plant with a capacity of 90,000 TPA of pig iron. It was proposed to make a preferential issue of its equity shares (prem. Rs 12.50 per share) to the shareholders of Sesa Goa Ltd., in the ratio of 1:2. 1993 - Two 2500 tonnes barges and ten small steel boats were delivered by the shipbuilding division. - 73,05,900 bonus shares allotted in prop. 1:1. 32,80,220 No. of equity shares (prem. Rs 50) allotted to Finalder

International Co. Ltd. to maintain their stake at 51%. 1994 - Second blast furnace was commissioned in the pig iron plant of Sesa Industries. 1995 - 17,89,200 rights shares issued (prop. 1:10 prem. Rs 90). Of these 47,613 shares were kept in abeyance. 1996 - During 7th, November, there was an amalgamation of the 100% subsidiary, Sesa Shipping Ltd. with Sesa Goa Ltd. - The Company owns 21 mining concessions. These mining concessions were granted to the Company under the Portuguese Law according to which they are to run in perpetuity so long as the terms of the concessions are complied with. - Appropriate agreement was been reached whereby shares of Australian collaborators were taken over by the company making Sesa Kembla Coke Company a 100% subsidiary. Sesa Industries Ltd. is a subsidiary of the Company. - 44,898 shares issued kept in abeyance in the rights issue. 1997 - The Company installed a plant for the recovery of pellet feed from the tailings through high intensity magnetic separating process at Codli Mines. - 2,525 shares kept in abeyance issued. - The company manufacturers 1.8 lac tonnes of pig iron through a subsidiary and producers metallurgical coke through a joint venture with Kembla Coal and Coke, an Australian company. - The company, it has become a subsidiary of Mitsui, with two Mitsui directors now on the board. - Sesa Goa Ltd. is learnt to be all set to acquire the entire equity holding of its Australian collaborator, Kembla Goa Holdings Ltd, Mauritius, in Sesa Kembla Coke Company Ltd (SKCCL), a subsidiary of Sesa Goa.

- Sesa would also be supplying hot metal to the proposed Teksid plant, a subsidiary of Fiat, being set up here. 1998 - Sesa Goa became part of the Mitsui family after the latter took over Finsider International of Italy a couple of years ago. 1999 - The company has acquired Narrain Mines, Karnataka, to shield itself from any price increase or variation in the quality of iron ore. - Sesa Goa is entered into a technical collaboration with Vaagen Verft, Norway, to manufacture fishing transfers. 2000 - The Company has closed down its Engineering Unit at Sirsaim and its workshop at Sanquelim with effect from September 19. - The company has introduced Voluntary Retirement Scheme during the year to restructure the organisation. 2002 -Sesa Goa Ltd informs that the Board of Directors of the Company have accepted the withdrawal of nomination of Dr K S Subramanian as Director by ICICI Ltd and Mr K R V Subramanian has been appointed as an Additional Director of the Company w e f May 22, 2002. 2003 -The Board of Directors of Sesa Goa Ltd at its meeting held today (January 29, 2003) has appointed Mr Leonard Anthony Dean, as Managing Director of the company wef April 01, 2003 in place of C M Brown whose term expires on March 31, 2003. -Receives Iron ore supply order from Pakistan Steel Mills for next 5 years. 2004 -Sesa Group completes 50 years of operations. -Sesa Goa's Shipbuilding Division builds its 62nd vessel, a 2200T barge for its own fleet. -Sesa Industries and Sesa Kembla sign an agreement with M/s Goa Energy Private Limited, a part of Videocon Group, to set up a 30MW Power plant at Amona. -Iron ore sales crosses 8.5 million MT.

-First sale of Sesa Kembla technology effected. -Compact charging system for coke plant is being commissioned. -Sesa Kembla Coke Comany Limited, a 100% subsidiary of Sesa Goa Limited, is merged with Sesa Goa Limited with effect from 1 April 2004. -Iron ore sales crossed 9.8 million tonnes. 2005 -Sesa Goa issues bonus shares to its shareholders. -Sesa Group declares a final dividend of 200% in addition to an interim dividend of 50% on the pre-bonus share capital. -Forbes Asia ranks Sesa Goa as one of Asia's 200 companies with sales than 1 billion US $ in its Best Under A Billion study. 2006 -Dun & Bradstreet ranks Sesa Goa as the 4th best in the Indian Mining Sector among India's top 500 companies. -Sesa Industries Limited is ranked 8th Best transitioning medium enterprises in a study conducted by Citigroup and IMA India. -Iron ore sales rise to 10.87 million tonnes in 2006 - 07. -Sesa Group records its highest profit in 2006 - 07 and declares a dividend of 400%. - Vedanta Resources plc, a diversified metals and mining group, listed on the London Stock Exchange acquires 51% controlling stake in Sesa Goa Limited from Mitsui & Co. Ltd. 2007 - Iron ore sales rise to 10.87 million tonnes in 2006 - 07. 2008 -Iron ore sales rise to 12.39 million tonnes in 2007 - 08. -The Company has issued Bonus Shares in the Ratio of 1:1. - The Company has splits its face value from Rs10/- to Rs1/-. 2009 -Sesa Goa Limited and Dempo Group have signed a definitive Share Purchase Agreement under which Sesa has acquired all the outstanding common shares of VS Dempo & Co. Private Limited, along with its 100% equity shares of Dempo Mining Corporation Pvt. Ltd and 50% equity shares of Goa Maritime Private Limited.

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Mining in Goa/ Sesa Goa - India

15.685848499787

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description

Sesa Goa is the largest iron ore producer and

exporter of Goa. Since 2007 Vedanta Resources

is the majority shareholder of Sesa Goa. Sesa

Goa's main mining operations are at Codli and

Sonshi. Sesa Goa also has other mining sites in

villages such as Pissurlem in Sattari and

Advalpal in Assonora.  Besides mining

activities in Goa, Sesa Goa is also mining in

Karnataka and Orissa.

Open cast iron ore, manganese and bauxite

mining in Goa causes major social and

environmental threats, including air pollution,

atmospheric dust, water pollution and scarcity,

destruction of agricultural fields, fisheries

losses, human right problems, and more.

Local communities and civil society groups

have raised serious concerns about the impacts

of mining in Goa. Read more.

current status (Oct 07, 2009)

Sirigaon Litigation

In June 2008 Sirigaon village residents filed a

petition to the Bombay High Court claiming

dried up well and siltation as a result of the

mining activities. The Bombay High Court

ordered an independent government body to

investigate the case (National Environmental

Engineering Research Institute). In 2009 a

report from this government body confirmed the

depletion of water supplies and the land

situation. It recommended that the companies

(among others Sesa Goa) should “replenish the

aquifier, restore the damaged rice fields and

stabilise mine waste”. These actions are

estimated to cost $1.4 million over 18 months.

Read more.

Advalpal Litigation

In 2009 a public interest litigation was filed by a

nine-year-old child of Advalpal village through

his mother Sharmila Naik together with the Goa

Foundation. The petitioners alleged that Sesa

Goa was indulging in hazardous mining in

violation of the approved mining plan. On

September 17, 2009 the High Court of Bombay

(interim order) restrained  Sesa Goa from

undertaking Phase I and II mining in Advalpal.

The Court ordered Sesa Goa to write a proposal

for removing illegal mining dumps in Advalpal

before the next hearing, likely in October 2009.

Read more.

companies involved

companies

Sesa Goa Limited

Sesa Group

Vedanta Resources - profile

Sesa Goa Limited, is the flagship company of

Sesa Group. Sesa Goa Limited earlier was an

Italian company, in the mid 1990s it was taken

over by the Japanese company Mitsui and in

2007 Vedanta acquired a majority share of Sesa

Goa.

dodgy aspects

Potential legal violations

Contamination of groundwater and river

water

Water act. 1974

Environmental Protection Act. 1986

The Mineral Conservation and Development

Rules, 1988

The Mines and Minerals Act. 1957

Contamination of air quality with dust and

chemical pollutants

Air Act. 1981

Noise pollution

The Noise Pollution (Regulation and

Controls) Rules, 2000

Encroachment by Sesa Goa onto School

land

Land Acquisition Act. 1984

Forest (Conservation) Act. 1980

financial institutions involved

banks

Bank of Baroda

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Bank of East Asia

corporate loan: $ 5 million (August 2008)

Bank of Tokyo Mitsubishi UFJ - profile

corporate loan: $ 73 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Barclays - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $66.8 million (August 2008)

BayernLB

corporate loan: $ 25 million (August 2008)

BNP Paribas - profile

corporate loan: $ 75 million (April 2007)

Chang Hwa Bank

corporate loan: $ 15 million (August 2008)

China Construction Bank - profile

corporate loan: $ 10 million (AUgust 2008)

Citigroup - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Crédit Agricole CIB

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

DBS Bank

corporate loan: $ 75 million (April 2007)

corporate loan: $ 25 million (August 2008)

DZ Bank

corporate loan: $ 25 million (April 2007)

ICICI Bank

corporate loan: $ 77 million (April 2007)

Intesa Sanpaolo - profile

corporate loan: $ 25 million (August 2008)

Mizuho - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Natixis - profile

corporate loan: $ 50 million (August 2008)

Royal Bank of Scotland - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Scotia Bank - profile

corporate loan: $ 50 million (August 2008)

Société Générale - profile

corporate loan: $ 75 million (April 2007)

Standard Chartered - profile

corporate loan: $ 66.8 million (August 2008)

State Bank of India

corporate loan: $ 66.8 million (August 2008)

Sumitomo Mitsui Banking Corporation - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

In April 2007, Vedanta Resources acquired a

51% controlling stake in the Indian iron ore

mining company Sesa Goa and made a bid for

another 20%. Total investment was US$ 1,370

million (€ 1,015 million). The acquisition was

financed in July 2007 by a one-year bridge loan

of US$ 1,100 million (€ 815 million) and

existing cash resources. The bridge loan was

arranged by ABN Amro Bank (now part of

Royal Bank of Scotland), Barclays, Citigroup

and ICICI Bank. Fifteen banks participated in

the syndicate, which was signed in August

2007.

In August 2008, Vedanta Resources secured a

US$ 1 billion (€ 642 million)five-year loan. The

loan is used to refinance the US$ 1.1 billion

acquisition loan that Vedanta took out in 2007

to help fund the purchase of a 51% stake in Sesa

Goa, India’s biggest private sector iron ore

producer. The total banking syndicate consisted

of 24 banks.

Since 2009 several banks have indicated they

will not invest in Vedanta Resources anymore.

Among these are Deutsche Bank, WestLB, and

Danske Bank. Also many investments funds

have disinvested from Vedanta Resources.

Among these are the Norwegian Government

Pension Fund, Martin Currie Investments, the

Church of England, the Joseph Rowntree

Charitable Trust and the Dutch Pension Fund

PGGM. The main reasons for these

disinvestments are Vedanta's persistent bad

performance on environmental, social, and

human rights issues, and it's refusal to cooperate

and improve on these issues.

what must happen

Norway's pension fund, the world's second-

largest sovereign wealth fund, sold its shares in

Vedanta Resources due to the company's

systematic environmental and human rights

failures at four Indian subsidiaries. Banks

should follow Norway's example.

Financial institutions that have a social ethic or

a concept of responsible lending should sever

ties with Vedanta Resources and its subsidiaries.

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further resources

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location

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external news

print

Mining in Goa/ Sesa Goa - India

basics

issues

bank role

15.685848499787

save location

dodgy aspects

Potential legal violations

Contamination of groundwater and river

water

Water act. 1974

Environmental Protection Act. 1986

The Mineral Conservation and Development

Rules, 1988

The Mines and Minerals Act. 1957

Contamination of air quality with dust and

chemical pollutants

Air Act. 1981

Noise pollution

The Noise Pollution (Regulation and

Controls) Rules, 2000

Encroachment by Sesa Goa onto School

land

Land Acquisition Act. 1984

Forest (Conservation) Act. 1980

financial institutions involved

banks

Bank of Baroda

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Bank of East Asia

corporate loan: $ 5 million (August 2008)

Bank of Tokyo Mitsubishi UFJ - profile

corporate loan: $ 73 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Barclays - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $66.8 million (August 2008)

BayernLB

corporate loan: $ 25 million (August 2008)

BNP Paribas - profile

corporate loan: $ 75 million (April 2007)

Chang Hwa Bank

corporate loan: $ 15 million (August 2008)

China Construction Bank - profile

corporate loan: $ 10 million (AUgust 2008)

Citigroup - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Crédit Agricole CIB

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

DBS Bank

corporate loan: $ 75 million (April 2007)

corporate loan: $ 25 million (August 2008)

DZ Bank

corporate loan: $ 25 million (April 2007)

ICICI Bank

corporate loan: $ 77 million (April 2007)

Intesa Sanpaolo - profile

corporate loan: $ 25 million (August 2008)

Mizuho - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Natixis - profile

corporate loan: $ 50 million (August 2008)

Royal Bank of Scotland - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Scotia Bank - profile

corporate loan: $ 50 million (August 2008)

Société Générale - profile

corporate loan: $ 75 million (April 2007)

Standard Chartered - profile

corporate loan: $ 66.8 million (August 2008)

State Bank of India

corporate loan: $ 66.8 million (August 2008)

Sumitomo Mitsui Banking Corporation - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

In April 2007, Vedanta Resources acquired a

51% controlling stake in the Indian iron ore

mining company Sesa Goa and made a bid for

another 20%. Total investment was US$ 1,370

million (€ 1,015 million). The acquisition was

financed in July 2007 by a one-year bridge loan

of US$ 1,100 million (€ 815 million) and

existing cash resources. The bridge loan was

arranged by ABN Amro Bank (now part of

Royal Bank of Scotland), Barclays, Citigroup

and ICICI Bank. Fifteen banks participated in

the syndicate, which was signed in August

2007.

In August 2008, Vedanta Resources secured a

US$ 1 billion (€ 642 million)five-year loan. The

loan is used to refinance the US$ 1.1 billion

acquisition loan that Vedanta took out in 2007

to help fund the purchase of a 51% stake in Sesa

Goa, India’s biggest private sector iron ore

producer. The total banking syndicate consisted

of 24 banks.

Since 2009 several banks have indicated they

will not invest in Vedanta Resources anymore.

Among these are Deutsche Bank, WestLB, and

Danske Bank. Also many investments funds

have disinvested from Vedanta Resources.

Among these are the Norwegian Government

Pension Fund, Martin Currie Investments, the

Church of England, the Joseph Rowntree

Charitable Trust and the Dutch Pension Fund

PGGM. The main reasons for these

disinvestments are Vedanta's persistent bad

performance on environmental, social, and

human rights issues, and it's refusal to cooperate

and improve on these issues.

what must happen

Norway's pension fund, the world's second-

largest sovereign wealth fund, sold its shares in

Vedanta Resources due to the company's

systematic environmental and human rights

failures at four Indian subsidiaries. Banks

should follow Norway's example.

Financial institutions that have a social ethic or

a concept of responsible lending should sever

ties with Vedanta Resources and its subsidiaries.

Copyright ©2008 BankTrack, created by EasyMINDBest viewed with Mozilla Firefox

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Rainforest Action NetworkUnited States

CounterCurrent/GegenStroemungGermany

MilieudefensieNetherlands

SETEMSpain

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The Wilderness SocietyAustralia

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partners

Amazon watchUnited States

Global WitnessUnited Kingdom

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BDS MovementPalestine

Greenpeace InternationalNetherlands

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International Accountability ProjectUnited States

World Resources InstituteUnited States

Friends of the Earth EuropeBelgium

ProfundoNetherlands

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SOMONetherlands

dodgy deals

active file

- international -Cluster Munitions producers

GabonBelinga iron ore project

PeruMajaz Copper Mine, Rio Blanco, Peru

AustraliaGunns pulp mill proposal Tasmania

IndiaBauxite mine Niyamgiri Hills

RomaniaCernavoda nuclear units 3 & 4

BangladeshPhulbari coal mine

IndiaMining in Goa/ Sesa Goa

Russian FederationSakhalin II oil and gas project

BrazilRio Madeira dam project

IndonesiaToka Tindung Goldmine

SlovakiaMochovce nuclear units 3&4

BrazilAngra 3 nuclear power plant

KazakhstanKashagan oil project

South AfricaMedupi Coal Power Plant

BrazilBelo Monte dam project

LaosTheun-Hinboun expansion project

SwedenMarkbygden Windpower project

BulgariaBelene nuclear power plant

LaosNam Theun 2 TurkeyIlisu Dam

CanadaCanadian Tar Sands

LithuaniaVisaginas Nuclear Power Plant

United StatesMountain Top Removal Coal Mining

ChilePatagonia Dams: HidroAysén

MalawiKayelekera Uranium mine

United StatesPebble gold-copper mine

ChinaAsia Pulp and Paper

MyanmarShwe Gas and Pipelines Projects

Viet NamBuon Kuop Hydroelectric Project

CongoTar SandsPapua New GuineaLNG Project

ZambiaKonkola Copper Mines

EthiopiaGibe III DamPapua New GuineaRamu Nickel Mine

on record

- international -Baku-Tbilisi-Ceyhan oil pipeline

MalaysiaSamlingTurkeyYusufeli dam project

BrazilAracruz pulp mills and plantations

PeruCamisea pipeline project

TurkmenistanTurkmen Bankaccounts

EcuadorBlock 31, Yasuni National Park

PhilippinesRapu Rapu Copper Mine

United StatesDynegy coal power plants

IndonesiaGrasberg Mine

RomaniaRosia Montana gold mine

UruguayBotnia pulp and paper mill

companies

Alliant Techsystems

Freeport McMoRanSingapore Technologies Engineering

Andritz Hanwha Textron

Archipelago Resources PLC

L-3 Communications Vedanta Resources

CRH Building Materials Group

Lockheed Martin Veolia Environment

Elbit SystemsNational Thermal Power Corporation (NTPC)

Walmart

ENI NHPC

ExxonMobil Poongsan

active file

ongoing campaign effort

last update: Sep 19, 2010

further resources

documents

links

pictures

videos

location

contact

bank comment

external news

print

Mining in Goa/ Sesa Goa - India

basics

15.685848499787

save location

issues

bank role

financial institutions involved

banks

Bank of Baroda

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Bank of East Asia

corporate loan: $ 5 million (August 2008)

Bank of Tokyo Mitsubishi UFJ - profile

corporate loan: $ 73 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Barclays - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $66.8 million (August 2008)

BayernLB

corporate loan: $ 25 million (August 2008)

BNP Paribas - profile

corporate loan: $ 75 million (April 2007)

Chang Hwa Bank

corporate loan: $ 15 million (August 2008)

China Construction Bank - profile

corporate loan: $ 10 million (AUgust 2008)

Citigroup - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Crédit Agricole CIB

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

DBS Bank

corporate loan: $ 75 million (April 2007)

corporate loan: $ 25 million (August 2008)

DZ Bank

corporate loan: $ 25 million (April 2007)

ICICI Bank

corporate loan: $ 77 million (April 2007)

Intesa Sanpaolo - profile

corporate loan: $ 25 million (August 2008)

Mizuho - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Natixis - profile

corporate loan: $ 50 million (August 2008)

Royal Bank of Scotland - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

Scotia Bank - profile

corporate loan: $ 50 million (August 2008)

Société Générale - profile

corporate loan: $ 75 million (April 2007)

Standard Chartered - profile

corporate loan: $ 66.8 million (August 2008)

State Bank of India

corporate loan: $ 66.8 million (August 2008)

Sumitomo Mitsui Banking Corporation - profile

corporate loan: $ 75 million (April 2007)

corporate loan: $ 66.8 million (August 2008)

In April 2007, Vedanta Resources acquired a 51% controlling

stake in the Indian iron ore mining company Sesa Goa and

made a bid for another 20%. Total investment was US$ 1,370

million (€ 1,015 million). The acquisition was financed in July

2007 by a one-year bridge loan of US$ 1,100 million (€ 815

million) and existing cash resources. The bridge loan was

arranged by ABN Amro Bank (now part of Royal Bank of

Scotland), Barclays, Citigroup and ICICI Bank. Fifteen banks

participated in the syndicate, which was signed in August

2007.

In August 2008, Vedanta Resources secured a US$ 1 billion (€

642 million)five-year loan. The loan is used to refinance the

US$ 1.1 billion acquisition loan that Vedanta took out in 2007

to help fund the purchase of a 51% stake in Sesa Goa, India’s

biggest private sector iron ore producer. The total banking

syndicate consisted of 24 banks.

Since 2009 several banks have indicated they will not invest in

Vedanta Resources anymore. Among these are Deutsche Bank,

WestLB, and Danske Bank. Also many investments funds

have disinvested from Vedanta Resources. Among these are

the Norwegian Government Pension Fund, Martin Currie

Investments, the Church of England, the Joseph Rowntree

Charitable Trust and the Dutch Pension Fund PGGM. The

main reasons for these disinvestments are Vedanta's persistent

bad performance on environmental, social, and human rights

issues, and it's refusal to cooperate and improve on these

issues.

what must happen

Norway's pension fund, the world's second-largest sovereign

wealth fund, sold its shares in Vedanta Resources due to the

company's systematic environmental and human rights failures

at four Indian subsidiaries. Banks should follow Norway's

example.

Financial institutions that have a social ethic or a concept of

responsible lending should sever ties with Vedanta Resources

and its subsidiaries.

Copyright ©2008 BankTrack, created by EasyMINDBest viewed with Mozilla Firefox

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Sesa Goa Limited

TypePublic Limited (BSE: 500295,

NSE: SESAGOA)

Industry Mining

Founded 1954

Headquarters Goa, Karnataka, Orissa - India

Key people Mr.P K Mukherjee, Managing Director

Products

Iron ore

Pig Iron

Metallurgical Coke

Revenue ▲ Rs. 6,284 Crores (2010)[1]

Net income ▲ Rs. 2,629 Crores (2010)[2]

Employees Approx. 4,100 (2010)

Website sesagoa.com

Sesa Goa is India's largest producer and exporter of iron ore in the private sector. For over five decades it is engaged in the business of exploration, mining and processing of iron ore. In fiscal 2010, it produced 21.4 million tonnes and sold 20.5 million tonnes of iron ore. It is one of the low cost producers of iron ore in the world and is well placed to serve the growing demand of Asian countries.[citation needed]

The mining operations are carried out in the States of Goa, Karnataka and Orissa in India. Iron ore from mines at Karnataka is exported through ports of Goa, Mangalore and Krishnapatnam while iron ore from mines in Orissa is mainly exported through ports of Haldia and Paradeep. Iron ore from mines in Goa is exported through port of Goa.

As of 31 March 2010, Sesa owns or has the rights to reserves and resources consisting of 353 million tonnes of iron ore at an average grade of 58.0%. The reserves and resources position has been independently reviewed and certified as per Joint Ore Reserve Committee (JORC) standard.[citation needed]

It acquired VS Dempo & Co. Private Limited (VSD) in June 2009, which in turn, also holds 100% equity shares of Dempo Mining Corporation Private Limited and 50% equity shares of Goa Maritime Private Limited. VSD's Goa mining assets includes processing plants, barges, jetties, transhippers and loading capacities at Mormugoa port.

Over the last two decades, Sesa has diversified into manufacturing of pig iron and metallurgical coke. It directly operates a metallurgical coke plant with an installed capacity of

280,000 TPA and, through 88.3% owned subsidiary, Sesa Industries Limited (SIL), operates a pig iron plant with an installed capacity of 250,000 TPA. SIL manufactures pig iron through the blast furnace route. Sesa owns metallurgical coke production technology and have entered into technology licensing agreements with different licenses for marketing its technology for setting up non-recovery coke oven plants across the globe.

Contents[hide]

1 History & Milestones 2 Strategic Positioning 3 Dempo Acquisition 4 Corporate Social Responsibility

o 4.1 Sesa Community Development Foundation (SCDF)o 4.2 Mineral Foundation of Goa (MFG)o 4.3 Other Initiatives

4.3.1 Health 4.3.2 Social Infrastructure 4.3.3 Water Supply 4.3.4 Education 4.3.5 Agriculture & Livelihood

o 4.4 Awards & Recognition 5 External links and references

[edit] History & Milestones1954

Baron Ludovic Toeplitz lands in Goa. With the financial backing of an enterprising Italian, Alessandro[who?], he acquires the Orosso Dongor Mining Concession in North Goa and starts a company called Scambi Economici S.A. Goa.

1955

The company renamed Sesa Goa Ltd. is bought over jointly by Gewerkeshaft Exploration a Bergbau represented by Eugene Plotzki and by Ferromin S.p.A. of Italy (a subsidiary of Finsider S.p.A. of the IRI group) represented by Paolo Tradardi, both parties having equal shareholding.

1957

Another company started in Goa, Mingoa Sociedade Mineral Goesal S.a.r.l. is incorporated with Fiat of Torino as the principal shareholder.

1963

Finsider S.p.A. acquires the West German interest in Sesa Goa Limitada and also all the shares of Mingoa.

1965

Sesa Goa and Mingoa are incorporated as Private Limited Companies under Indian Companies Act 1956.

1979

A single company Sesa Goa Private Limited is formed with amalgamation of Sesa Goa and Mingoa fully owned by Finsider S.p.A.

1981

Sesa Goa goes public with 42,000 Indian shareholders holding 60% of its shares and the remaining 40% held by Finsider International (later became ILVA INTERNATIONAL)

1984

Sesa Goa starts a barge construction unit at Sirsaim which has since developed into a Ship Building division.

1992

First phase of 150,000 tons per year Pig Iron plant is commissioned and manufacture of low phosphorous foundry grade pig iron starts.

1994

Second blast furnace is commissioned in July.

1995

Sesa Shipping is launched in January with acquisition of Transhipper M.V. Orissa. 84 coke ovens are commissioned in April.

1996

On 11 October, MITSUI & CO. of Japan, through Earlyguard, UK, buys Finsider International with its 51% stake in Sesa Goa Ltd.

1997

Sesa Kembla becomes 100% subsidiary of Sesa Goa. Karnataka mining developments commence.

1998

Sesa Community development Foundation is established to encompass NCM Sesa Technical School and a new Sesa Football Academy.

1999

Sesa Goa commences mining operations at Barbil in Orissa producing high grade iron ore and exporting from the nearby ports of Haldia and Paradip.

2000

Sesa Kembla Coke completes the development of an indiginous and environment friendly technology for producing high quality Metallurgical Coke and generating power as a by-product. Sesa Kembla applies for international patents for its technology.

2002

Sesa Group becomes the first business of its kind to be certified with OHSAS 18001.

2003

Sesa Goa equity in Sesa Industries raised to 88.25%

2004

Sesa Group completes 50 years of operations.

2007

Vedanta Resources Plc, a diversified metals and mining group, listed on the London Stock Exchange acquires 51% controlling stake in Sesa Goa Ltd. from Mitsui & Co. Ltd.

2009

Sesa Goa Limited and Dempo Group have signed a definitive share purchase agreement under which Sesa has acquired all the outstanding common shares of VS Dempo & Co. Pvt. Ltd. along with its 100% equity shares of Dempo Mining Corporation Pvt. Ltd. and 50% equity shares of Goa Maritime Pvt. Ltd.

[edit] Strategic PositioningSesa Goa, over the years has created ‘Sesa’ brand of iron ore which caters primarily to the rapidly growing emerging economies of India and China. While this is true across the Sesa Group’s and the Company’s different business segments – iron ore, pig iron and met coke, there are variations among the businesses in terms of their relative focus on China and India.

Iron Ore -With over 80% of its sales in China, this business is focusing on mining different grades of ore in India and is exported mainly to China. With its cost competitive ore base and mine locations having relatively good accessibility to China, Sesa Goa has a niche positioning in the Chinese sea-borne iron ore business.[citation needed]

Pig Iron -This business, which was an initiative in moving up the iron-ore value chain[clarification

needed], focuses on the domestic Indian market, especially in western and southern India, and caters to steel mills and foundries.Metallurgical Coke (Met Coke) -The metallurgical coke business is primarily a backward integration initiative to support the pig iron business. The Company utilises its specialised coke making technology to build efficiencies in this business. Some of the production is sold externally based on market conditions and internal requirements.

[edit] Dempo AcquisitionIn June 2009, Sesa Goa signed a definitive share purchase agreement under which the Company acquired all the outstanding common shares of VS Dempo and Company Private Limited (‘VSD’ or ‘Dempo’), which in turn, also held 100% equity shares of Dempo Mining Corporation Private Limited and 50% equity shares of Goa Maritime Private Limited. The deal was signed for a total consideration of Rs. 1,750 (equivalent to US$368 million), on a debt-free and cash-free basis, and included net normative working capital of Rs. 145 crore (equivalent to US$31 million). The acquisition was wholly financed by Sesa Goa’s own cash resources.

With this acquisition, the Company got access to VSD’s mining assets in Goa. VSD either owns or has the rights to mineable reserves and resources estimated at 70 million tonnes of iron ore in Goa. In addition, VSD’s mining assets in Goa includes processing plants, barges, jetties, transhippers and loading capacities at Mormugoa port. In 2008-09, VSD sold 4.36 million tonnes of iron ore, which included its own production and purchased ore.

Not only has the acquisition added to Sesa Goa’s resources but has also given the Company access to VSD’s customer base. At the time of acquisition VSD was one of the largest exporters of iron ore from Goa with exports of around 4 million tonnes.

During the course of the year, Sesa Goa has already started leveraging several synergies between the two Companies. These include:

Exploration: With Sesa Goa’s focus on exploration, impetus has been given to understand the resources at Dempo, and a composite exploration plan has been worked out.

Mine planning and operations: With a central planning cell, the focus is on optimizing resources in all mines, particularly those with the same ore-body.

Processing and grade optimisation: Process flows at Dempo mines are being reviewed to increase recovery.

Logistic (land and river fleet operation): With both companies having mines and river jetties in close vicinity, efforts are on to rationalize transport, with a view to reducing unit costs, increasing throughput and improving logistic efficiencies.

Port operations: The acquisition has resulted in additional stacking capacities and optimum utilisation of Dempo’s transhipper

Centralisation of common services: This includes integration of functions like marketing , HR, procurement, mine planning, logistics, etc.

While these are parts of an ongoing process, Sesa Goa has succeeded in optimising the Dempo business in 2009-10. This is reflected in the financial performance of the Company in 2009-10.

[edit] Corporate Social ResponsibilityInitiatives fostering community development are implemented through the Sesa Community Development Foundation. In addition, the Company undertakes some need based initiatives, both directly and in association with the Mineral Foundation of India.

[edit] Sesa Community Development Foundation (SCDF)

This foundation runs the Sesa Technical School which provides technical training to local students; and the Sesa Football Academy which nurtures future footballers from Goa. The junior football academy and the technical school is built on the reclaimed mine site at Sanquelim – an example of both environmental conservation and community development work.

The Sesa Technical School (STS) has become a leading vocational training institute in Goa and has a reputation of identifying and nurturing potential excellence of young Goans. For the last several years it has maintained 100% results in the Industrial Training Institute (ITI) trade examinations. An important accessory of Sesa Goa in its CSR initiatives, STS has lived up to the expectations by imparting rigorous training in the trades of fitters, machinists, instrument mechanics and electricians. In 2009, all the 54 trainees passed the ITI trade test with flying colours. Among them, three were top rankers. As a result of excellent training; it has became a practice of the prospective employers of surrounding industries to visit the school for campus interviews to choose their manpower requirement. The school arranges campus interviews and ensures that all the trainees get absorbed in industries after completion of the course.

The Sesa Football Academy has two centres. There is a junior level academy, which began functioning from June 1999 at Sanquelim, Goa; and a senior academy, which started from June 2008 at Sirsaim, Goa. The Company started its junior residential football academy in 1999 in its reclaimed mine site at Sanquelim with a beautiful football ground, a well established gymnasium, and a complete hostel facility along with a recreation centre. It presently houses 36 boys. SFA is the only residential academy of Goa which trains the boys for four years besides allowing them to pursue their regular academic studies. All the expenses including the trainee’s academic studies are taken care by the SFA. When Sesa Goa decided to start the senior academy

true to its style, it created a full-fledged football infrastructure for the senior team. So, the seniors, along with their coaches, are housed under one roof with full scale facilities, such as nutritious food in the canteen, gymnasium, steam sauna as well as recreational and indoor game options.

[edit] Mineral Foundation of Goa (MFG)

This is an NGO established by the major mining companies of Goa, for implementation of social and environmental activities in the mining belt of the state. The MFG’s work centres on projects which are aimed to develop environmental and social infrastructure. The main thrust is to create livelihood options for rural youth through various training programmes like bed side nursing, food and beverage, plumbing, and others.

Sesa Goa and the MFG in association with the Government of Goa are jointly implementing a project “Gram Nirman 2010” aimed at overall development of the village. These are at Codli and Mayem – one each in south and north Goa respectively. The first phase of the project has been completed involving agriculture, education and social infrastructure development.

[edit] Other Initiatives

[edit] Health

Started four new community medical centres at Piligaon, Mulgaon, Surla and Panchawadi in Goa.

Constructed a Neuro Rehab Centre for neurologically challenged children at the Goa Medical College.

Organised specialised medical camps like paediatric camps, diabetes and hypertension detection camps, general health camps at schools, balwadi health campaigns, etc.

Conducted various health camps like anaemia detection, cataract detection and subsequent treatment. In addition, urology detection camps for the spouses of employees were organised.

Sustained awareness campaign for cancer, swine flu and malaria. More than 240 employees donated blood on World AIDS Day.

[edit] Social Infrastructure

Construction of balwadis, anganwadis, village resource centres, panchayat halls,as well as platforms and steps for idol immersion.

Building metal roads around business areas, construction of bus stops, public toilets, crematoriums, and development of gardens.

Construction of compound walls at schools, and reconstruction of religious buildings for beautification and protection.

Provision of library infrastructure and gymnasium equipment, and play equipment for public parks, school grounds, and panchayat areas.

[edit] Water Supply

Open tube wells were provided in villages and local schools for drinking and irrigation. Commenced a drinking water project for facilitating residents of Kirlapal-Dabal panchayat under

Gram Nirman Phase II. Along with MFG, carried out de-silting of lakes and streams for protection of natural water

resource. Construction of bandharas on natural water streams for storage and irrigation.

[edit] Education

Constructed 12 Modern anganwadis in collaboration with MFG across the mining belt. Trained balwadi teachers in Montessori methods. Provided play equipment to balwadi and primary schools. Distributed books and study materials to over 73 schools. Organised coaching classes for over 70 students of Bicholim and Sattari taluka. Adopted mid-day meal schemes in Government High Schools that benefits 100 students daily. Renovated school building and libraries. Provided scholarship to meritorious students. Conducted school health and education improvement programmes in association with an NGO

called Manthan. Conducted free vocational tuition classes for 10th standard students around our Karnataka

mines in association with Sri Taralabalu Jagadguru Educational Institution, Sirigere. Adopted the Residential School for Child Labour, run by an NGO called SPEECH at Karnataka.

[edit] Agriculture & Livelihood

Brought under cultivation nearly 146 hectares of agricultural land near our mines by providing the assistance to the farmers at Vagona, Codli, Cudnem, Amona, Navelim, and Betki. Some 600 families benefitted from the programme

Provided incentives like construction of bandharas, provision of power tillers, tractors, fertilizers and improved seeds for farmers to restart farming near our mining areas.

Imparted skilled development programmes in the latest techniques of coconut harvesting, mushroom cultivation, grafting and organic farming for youth, in association of the Government of Goa’s Department of agriculture.

Signed MoU with the Betki Kandhola Panlot Sangh and the Amona Panlot Sangh for watershed activities and agriculture improvement programmes.

Constructed bandharas to store water for irrigation in 12 locations in association with the MFG. Trained women in different livelihood skills like stitching, bamboo crafts, coconut shell items,

catering and imitation jewellery, and established 40 self-help groups.

[edit] Awards & Recognition

Health Safety and Environment

Sesa Industries received the National Award for Excellence in Water Management 2009 as a “Water Efficient Unit” organised by Confederation of Indian Industry (CII) by CII-Sohrabji Godrej Green Business Centre.

The Company’s reclaimed Sanquelim mine was awarded the “Certificate of Appreciation for Plantation Management” by CII), Western Region.

In January 2010, the Company secured the following awards: Afforestation - 1st Prize; Waste Dump Management – 1st Prize; Top Soil Management – 2nd Prize; Systematic Development, Reclamation and Rehabilitation

2nd Prize; Management of Sub Grade Minerals * 2nd Prize; Installation and use of Mechanical Beneficiation Plant

2nd Prize; Publicity and Propaganda – 1st Prize. Apart from these, Sesa Goa secured the first prize for overall performance.

In April 2010, Sesa Industries Ltd and Sesa Goa’s Met Coke Division won the International Safety Award for 2009 by the British Safety Council.

During the 47th National Maritime Celebration, Sesa Goa was adjudged as the best Barge operator in Goa (2009–10).[citation needed]

Corporate Social Responsibility

Sesa Goa won the overall first prize for Corporate Social Responsibility (CSR) during the 7th National conference on Occupational Safety, Health and Environment, organized by Inspectorate of Factories and Boilers, Govt. of Goa, held in February 2010.

DIVERSIFIED MINER

Vedanta lifts FY output, says Zambia expansion project on track Diversified-miner Vedanta Resources had achieved “significant” increases in the yearly output of all its business units, while work on the Konkola Deep Mine Project (KDMP), in Zambia, continued on schedule. The India-based miner on Thursday...

By: Chanel de Bruyn

8th April 2010

 

NEWS THIS WEEK

Brazilian giant hunting down resources prey like stealthy jaguar BRAZILIAN mining group Companhia Vale do Rio Doce (CVRD), the world

By: Keith Campbell

23rd March 2007

 

NEWS THIS WEEK

Brazilian giant strikes again, stalks new prey BRAZILIAN mining and logistics major Companhia Vale do Rio Doce (CVRD) has started 2007 like it finished 2006 – seeking acquisitions.

By: Keith Campbell

9th March 2007

LEARNING AND DEVELOPMENTSesa takes immense pride in its Learning and Development initiatives. Some of the major L & D activities are described below:

Management Development Programmes for GETs: Sesa tied up with a reputed management institute in Goa, one among the top 20 in the country, to equip its young engineers with necessary tools and techniques to be effective frontline managers. Various areas such as communication, team building and project management are covered. Separate modules on various aspects of management and behavioural skills are conducted simultaneously for the remaining executives to take care of skills gaps.

Training on Structured Problem Solving Approach: Sesa started an initiative through which it has started to equip employees with the tools and techniques of Structured Problem Solving, which, apart from helping them solve chronic problems in their work areas is also expected to help them in identifying improvement opportunities.

Proactive Work Ethos and Attitudinal Change Programme: The programme was targeted at workmen and aimed to motivate them to align their personal values to the organisation's values. Inputs were provided on behaviours and attitudes in both personal and professional contexts. The overall objective was to enable employees realise their fullest human potential. Over 300 employees of the Dempo units were covered under this initiative, along with workmen from the existing Sesa units.

Communities of Practice: Sesa Goa has created a Community of Practice in Mining for its employees as an effort towards shared learning, specifically for employees who have an educational background in Mining and are involved in Mining Operations (including Exploration, Mine Planning and Logistics). The forum is entirely professional and is used to share experiences and knowledge, discuss new trends, solve work-related problems, learn and share best practices and develop members’ skills. Community affairs progress through meetings, email networks and reviews. The same concept will soon be extended to other areas such as logistics.

Technical Training: To accelerate the learning of, and also to derive maximum synergies from the young professionals spread across the Company; Sesa has started an initiative to provide modular training on the various technical aspects of the business to all professionals in the Company with less than 5 years of experience. The training covers the basics of our mining, pig iron and met coke business, and our in-house technical experts deliver the sessions. All new joinees hired as freshers from various campuses are given this training as a part of their induction programme.

Self Nomination:To ensure that employees are given a chance to direct their own learning and development, Sesa started an initiative whereby each Staff member could nominate themselves for various training programmes by sending a mail directly to Corporate Human Resources. This allowed each employee to plan their training in advance keeping in mind their work schedules, thus also improving participation and overall effectiveness of the programmes.

OUR OPERATIONSSesa Goa's operations is organised into Iron Ore Division, Metallurgical Coke Division, Pig Iron business through its subsidiary Sesa Industries Limited and a technology business, each of which operates independently.

IRON ORE OPERATIONS

"Sesa Goa is India's largest producer and exporter of Iron Ore in the private sector, with mining and processing facilities located in Goa, Karnataka and Orissa, India. We are on course to be one of the top four Iron Ore producing companies in the world post our expansion plans to 50 Mt from the current level of 21 Mt of Iron Ore production."

Read more

PIG IRON OPERATIONS

"Sesa Goa's Pig Iron business is managed through 88% owned subsidiary Sesa Industries Limited commenced operations in 1994. The facilities are located in Amona, Goa, India. It has a capacity of 250,000 tpa and is being expanded to 625,000 tpa."

Read more

METALLURGICAL COKE

"Sesa Goa's Metallurgical Coke Division is a 100% subsidiary of Sesa Goa Limited was formed in 1994. The plant is situated at Amona, Goa, India. We are expanding our coke production capacity from 280,000 tpa to 560,000 tpa."

Read more

COKE MAKING TECHNOLOGY

"Sesa Goa provides proprietary technologies and specialist services in the area of Coke Making Technology for companies worldwide and to Sesa Goa's own coke making operation to improve efficiency and reduce operating costs."

PRODUCTSWith operations located in India, Sesa Goa is India's largest producer and exporter of iron ore in the private sector. We are on course to be the fourth largest iron ore producer in the World. Our other products include Pig Iron and Metallurgical Coke. We also own and sell our Coke- Making Technology

IRON ORE

"Sesa Goa offers processed and screened quality Iron ore fines & lumps produced at Sesa Goa Limited/ VS Dempo & Company Ltd" Please click here to view the complete product offer details

Read more

PIG IRON

"Sesa Industries offers best quality Low Phosphorous Nodular, Foundry & Basic grade Pig Iron." Please click here to view the complete product offer details

Read more

METALLURGICAL COKE

"Sesa Goa offers low ash premium quality metallurgical coke."Please click here to view the complete product offer details

Read more

COKE MAKING TECHNOLOGY

"Sesa Goa provides proprietary coke-making technology and specialist service in the area of coke making process worldwide and also to Sesa Goa's own operations to improve efficiency and reduce operating costs." Please click here to view the details of our coke-making technology

SUSTAINABLE DEVELOPMENTSustainable development is an integral part of our business practices, long-term strategy and overall ethos. It reflects in the way we operate and represents a core commitment of our management and employees. We believe that sustainability is a dynamic process and not about finding an ideal status. Consequently, we are continuously innovating and enhancing our environmental and social performance.Our focus on sustainability drives our conviction to pursue value creating projects and at the same time achieve positive environmental, social, health and safety outcomes with emphasis on establishing robust management systems. The process deployed helps us in enhancing focus and gives direction to our sustainability roadmap.Our sustainable development strategy is all encompassing of four elements: ENVIRONMENTAL STEWARDSHIP:Respect for nature, enhanced resource conservation and use of environment friendly technology are embodied in our working NURTURING PEOPLE:People are our key assets. We are committed to building a flexible, flat and learning organisation with an engaged and high performing workforce. We believe in nurturing and mentoring leaders from within and providing opportunities for growth based in meritocracy, performance and integrity. HEALTH AND SAFETY:We are committed to providing a safe, secure and healthy workplace for all employees by using the best technology and practices.EMPOWERING COMMUNITIES:Communities are integral to our business. We are committed to enhancing the quality of life of the communities near our operations and creating self sustaining communities. We work to gain and nurture our social license to operate in the host of communities.

HEALTH, SAFETY & ENVIRONMENTSesa Goa places a strong emphasis on Health, Safety & Environment ("HSE"). We being a mining industry have major challenges on HSE. We are continuously seeking to address these challenges by

Mining in environmentally responsible and cleaner ways; through adoption of new and efficient technologies; modernisation of equipments; new ways of operating to actively minimise the negative environmental impacts and conserving natural resources through efficient use.

Eliminating the occupational illness by providing a workplace that is free from occupational health risk and hygiene hazard. Providing a safe workplace that is injury-free working environment for all our employees and contract workmen's.

Sesa Goa's corporate HSE department & the management review committee frame the policy and guidelines on HSE; they also review the effectiveness of the system periodically. Today we have a well defined policy in Safety, Health, Environment & Quality ("SHEQ") for all our operating units. The committee guides our sustainable development endeavour, sets annual targets and monitors progress in line with our HSE and social policies with a clear focus on integrating HSE aspects in the decision-making process. All our locations are certified for ISO 9001, ISO 14001 and OHSAS 18001 except Orissa Operations and OHSAS for Dempo Operations.The HSE committee's agenda is taken forward by the senior management at each site and they are supported by HSE professionals who implement this agenda. We have a well qualified HSE and CSR teams across all our operations comprising over 50 qualified and experienced professionals.

STRATEGY

Our core values of growth, entrepreneurship, excellence, trust and sustainability not only encompass our business philosophy, but also underline our relationships with all our stakeholders, shape the culture of our company and guide us in our actions and decisions.INTEGRAL TO OUR BUSINESS PHILOSOPHYSustainable development is integral to our business philosophy. We see the key drivers of our approach as being: proactive engagement with our stakeholders; attracting and retaining the best talent; our provision of a safe and healthy working environment; our focus on using environmentally friendly technologies and our drive to conserve natural resources.CONSERVATION OF NATURAL RESOURCESThis is a fundamental aspect of everything we do. We have set ambitious targets at our business to use fewer resources. Our water and energy conservation performance has been promising and has set new targets in some instances.HEALTH AND SAFETYSesa Goa is committed to achieving best practice in health and safety at all of our units. Our systems are well established and are regularly reviewed and monitored taking into account our own experiences and industry best practice. Knowledge-sharing across the Vedanta group companies plays an important part in this process.OUR LOCAL COMMUNITIESWe believe we have a responsibility to engage with the communities in which we operate and to foster their social and economic development. These principles are embedded across the organisation and are a key element of our employee training, development and performance at all levels.OUR PEOPLEOur people are our valued asset and drive our overall performance. Our vision is to build a flexible, agile and flat organisation with world-class capabilities and a high-performance culture. Respect for the individual, valuing diversity, fostering entrepreneurship, ensuring an enabling environment and developing a "can do" attitude is a way of life at Sesa Goa.

Sesa Goa’s costs on railway freight, export duties and royalty rates have risen. As a result, its operating profit margin fell by around 2 percentage points sequentially, though it gained by 16 percentage points over the year-ago period

Mark to Market | Ravi Ananthanarayanan

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Iron ore mining company Sesa Goa Ltd has been unable to capitalize on the sharp rise in iron ore prices, due to external factors. In the June quarter, though realizations improved dramatically from a year ago, slower growth in despatches affected its performance. On an organic basis, Sesa Goa’s volumes fell year-on-year (y-o-y). But thanks to the Dempo acquisition, volumes rose 14% to 5.4 million tonnes (mt). The acquisition contributed to 1.2 mt of this. Volumes were lower than the 7.4 mt it sold in the March quarter.

As pointed out earlier, this is due to external factors. In Goa, strict controls on the shipment of iron ore fines from mid-May affected shipments. The company’s operations in Karnataka faced bigger problems, with the controversy over illegal mining making life difficult for iron ore producers. Obtaining permits and delays in transportation due to checks have affected exports. In Orissa too, stricter controls and procedural delays are affecting Sesa Goa’s despatches. Operations in Karnataka and Orissa have been suffering for a few quarters now.

Also See Linked Fortunes (Graphic)

Despite these setbacks, the company’s results were protected by higher realizations, which doubled y-o-y and were up by around 40% over the previous quarter. Sales rose 140% to Rs2,394 crore in the June quarter, while net profit tripled, over the year-ago period. On a sequential basis, revenue was flat despite a 27% drop in volumes, while net profit rose 7.4%, primarily due to higher other income and lower income tax.

Sesa Goa’s costs on railway freight, export duties and royalty rates have risen. As a result, its operating profit margin fell by around 2 percentage points sequentially, though it gained by 16 percentage points over the year-ago period, thanks to the sharp increase in realizations.

The uncertain operating environment is a key concern. Apart from existing operations, expansion projects, too, depend on getting the requisite clearances in time. The company is confident that its operations in Karnataka and Orissa will return to normalcy in the current year and has reported some improvement in Karnataka in July. Sesa Goa is maintaining its volume growth projection of 20-25% for the current fiscal.

Meanwhile, the iron ore price scenario has turned uncertain. Worries about slower demand from the Organisation for Economic Co-operation and Development (OECD) and Chinese markets have seen iron ore fine prices fall 40% since end-April. On a y-o-y basis, prices are still about 40% higher.

Even if Sesa Goa delivers on the 20-25% volume growth it has projected, earnings estimates would have to be curtailed if iron ore prices continue to correct. Higher duties on iron ore export are another threat. At current levels of profitability—Sesa’s average realization was $84 (Rs3,956) per tonne against a cost of $25 per tonne—there’s enough headroom for the company. But investors will focus on iron ore prices, given its huge influence on Sesa’s share price. The company’s shares have already corrected by 28% from its highs in April.

Graphic by Yogesh Kumar/Mint

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Sesa Goa faces uncertain ore prices

Sesa Goa’s costs on railway freight, export duties and royalty rates have risen. As a result, its operating profit margin fell by around 2 percentage points sequentially, though it gained by 16 percentage points over the year-ago period

‘Illegal mining in Goa cannot be brought to book’

Panaji, Sep 3 – In an indirect criticism of the state government, a top official of Sesa Goa (SG) – a Vedanta Resources-owned mining company based in Goa – Friday said it was virtually impossible to fight illegal mining in Goa because of ‘issues faced in pursuing such matters’.

Speaking at a function on ‘Mining and human rights’ here, Prasun Mukherjee, managing director of SG, admitted that Goa was affected by illegal mining but also added that SG had made several efforts to nab those involved in the trade and the efforts to bring the culprits to book were ’stonewalled’.

‘Whenever we have caught such (illegal) cargo, we have faced issues while pursuing the matter,’ said Mukherjee, pointedly adding that he would not like to comment any further on the issue of illegal mining, which according to government figures has become a Rs.4,000 crore industry in the last four years.

Mukherjee, whose SG is the biggest mining outfit in the state – exporting nearly 20 million tonnes of ore – also said that the ‘due process’ required to bring the illegal ore dealer to book, simply could not be fulfilled in Goa.

‘If I caught someone stealing ore in the past, there were issues faced in pursuing the matter. I will not say anything more. I will leave it there,’ Mukherjee said.

Leader of Opposition Manohar Parrikar and civil society groups have accused Chief Minister Digambar Kamat, who is also the minister for mines, of shielding the illegal mining industry,

which, according to documents tabled in the assembly, amounted to 18 percent of the total ore export of nearly 40 million tonnes annually.

IANS