Sesa Goa, a company owned by Vedanta Group is planning to invest USD 400 million on its iron ore project in Liberia situated in South Africa, in the upcoming years. They have already invested around USD 35 million till now and will invest around USD 100 million by the end of this year. They will further invest about USD 259 million to USD 400 million in next two three years.
They will invest the huge amount only after they have completed the first phase of the project targeting a production of 2 MnTPA by December 2014. Also, they will partially begin with the work on phase two of the project.
Sesa Goa had acquired Liberia’s Western clusters project for USD 123.5 million in 2012. They divided the exploration process in different phases. After the completion with all the phases they target to reach 30 MnTPA capacity production by 2016-17. However, this target fulfillment completely depends on the market conditions. They have already started fetching for buyers from the regions of Europe and Middle-East countries.
The company owns mines in Karnataka and Goa which are not in operation due to the ban and also their lease for mining has expired. They have applied for lease and are waiting for forest clearance from the Ministry of Environment and Forests (MoEF) to resume with mining operations in Karnataka’s Chitradurga district.
“We are expecting letter from MoEF to state government to flow very soon but we cannot predict when it will happen. I am hopeful of resuming mining in the second quarter,” Sesa Goa’s Managing Director, P.K.Mukherjee said.