ET reported that Vedanta Group firm Sesa Goa said that it will stop mining in Karnataka's Chitradurga with immediate effect, following the Supreme Court's order banning mining in Chitradurga and Tumkur districts.

Sasa Goa in a statement said that "It will adversely affect to some extent the performance of the company.”

The filing added that the annual permitted capacity of the said mine in Chitradurga at present is 6 million tonnes".

The apex court yesterday had extended the ban on mining to Tumkur and Chitradurga districts, while acting on a recommendation by its expert panel for halting extraction of iron ores in the two districts of the state. Mining in Bellary region had already been banned by the court on July 29.

Sesa Goa, which has produced 18.8 million tonnes of iron ore in the last fiscal, had said earlier that ban on mining in Chitradurga will affect its gross revenues by up to 15%. The company, while announcing its first quarter results, had also lowered its sales guidance for the year to 15 to 16% from the earlier projection of 25% amid uncertainty over resumption of iron ore exports from Karnataka.

Industry sources said suspension of mining in Chitradurga will also affect company's expansion plans in Karnataka.

(Sourced from ET)