Sesa Goa plans to invest Rs.4 bn on new mines

November 6th, 2008 - 7:48 pm ICT by IANS  

Kolkata, Nov 6 (IANS) India’s largest exporter of iron ore in the private sector, Sesa Goa Ltd, plans to invest about Rs.4 billion in the next 12 to 18 months to develop new mines, especially overseas, a top company official said here Thursday.”We are looking at acquiring iron ore mines abroad as prices of mines globally have fallen significantly over the past few months,” P.K. Mukherjee, managing director of the flagship company of the Sesa Group, told reporters on the sidelines of a mining summit.

Mukherjee, however, did not disclose the countries his company was eyeing for such acquisitions.

Sesa Goa had plans to invest about Rs.2 billion in developing mines in the current fiscal and the company would fulfil its investment commitment, he said.

“We are not cutting down on our planned investments, nor will there be any cut in our own current output despite fall in iron ore prices as our business is driven by volumes,” Mukherjee said.

The output growth target of the company for the current fiscal will be maintained at 25-30 percent as announced earlier, he said.

The increased production would mostly be exported as the company finds domestic market shrinking, he said, adding: “There would however be a dent in our profitability due to fall in iron ore prices in the current year.”

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