Sesa Goa Limited purchases assets of Bellary Steel & Alloys Limited

Sesa Goa Limited (SGL) has purchased the assets of the upcoming Steel Plant Unit of Bellary Steel & Alloys Limited (BSAL). The investment is for an all cash consideration of Rs 220.00 Crore. BSAL’s secured creditors, represented by IFCI Ltd, had taken over possession of the properties of BSAL in association with the official liquidator.

BSAL was in the process of putting up a 0.5 million tons per annum Steel Plant Project at Bellary. The properties of the under construction plant acquired are free hold land of 700 acres, building and structures, plant and machinery and other assets of the Steel Plant. The Assets have been transferred to SGL effective 22 March 2011.

Sesa Goa is presently conducting a detailed assessment in order to determine the best way forward for commissioning the steel plant at the earliest. Sesa expects to benefit from the iron ore rich belt in the state of Karnataka. The asset provides Sesa with an exceptional opportunity to expeditiously set up a value addition facility, with approx. 700 acres of freehold land. The project is in close proximity of national highway, railway and source of water.

Mr Mukherjee, Managing Director, Sesa Goa Limited, said the firm has been on the lookout to establish value addition facilities, as desired by the State Government, and this acquisition provides the firm with an excellent opportunity to leap frog ahead in that direction. Mukherjee reiterated that the investment as well substantiates Sesa Goa’s commitment towards Karnataka.

Sesa Goa Ltd is India's largest producer and exporter of iron ore in the private sector. The company is a majority owned and controlled subsidiary of Vedanta Resources plc, the London listed diversified metals and mining major. For over five decades, Sesa has been involved in iron ore mining, beneficiation and exports. Over the last two decades, it has diversified into the manufacture of pig iron and metallurgical coke.

Sesa has mining operations in Goa and Karnataka while it also operates 280,000 tons per year metallurgical coke plant and 250,000 tons per year pig iron plant in Goa. Sesa Goa is India's foremost iron ore processer in the private sector and is on course to be in the league of top four iron ore producing companies in the World. The investment adds to Sesa Goa Ltd’s existing operations in Karnataka and bolsters its production in the country.

25th March 2011