Sesa Goa

Coordinates	34°5′24″N74°47′24″N
Company type	Public Limited
Traded as	|

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.

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.

It acquired VS Dempo & Co. Private Limited (VSD) now Sesa Resources Limited in June 2009, which in turn, also holds 100% equity shares of Dempo Mining Corporation Private Limited now Sesa Mining Corporation 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.

History & Milestones

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 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.

Strategic Positioning

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

Dempo Acquisition

In 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.

Corporate Social Responsibility

Initiatives 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.

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 become 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.

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.

Other Initiatives

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.

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.

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.

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.

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.

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).

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.

External links and references

Group homepage

Annual Reports & Press Releases

Category:Iron Ore Category:Mining companies of India Category:Companies based in Goa Category:1954 establishments