Sesa Goa has received a showcause notice from the
Jharkhand government asking it why its prospective licence
for iron ore mines in the state should not be cancelled.
district mining officer of Chaibasa has said the company
seemed more interested in keeping the 7 square km of mining
area in its fold rather than developing it.
company has been asked to reply to the showcause notice
in a month''s time.
valuation received the first blow when the Centre imposed
an export levy of Rs300 a tonne on iron ore on 28 February.
The company exports one-tenth of its 9.6-million-tonne
output to Japan and 58 per cent to China and Taiwan.
Goa received the prospective licence for the mines in
Jharkhand''s West Singhbhum district in early 2005.
sources said the letter gains significance because the
valuation of the country''s second-largest iron ore exporter
would be determined by its reported 150 million tonne
of iron ore reserves in Orissa, Karnataka and Goa and
the prospective mining licence in Jharkhand (government-owned
MMTC is the country''s largest iron ore exporter).
Mittal controlled Arcelor Mittal, Anil Agarwal-controlled
Vedanta Resources, and the Aditya Birla Group''s closely-held
Essel Mining & Industries have submitted bids for
Mitsui''s 51 per cent stake in Sesa Goa.