Source - CNBC-TV18

India's largest private sector iron ore producer and exporter Sesa Goa's shares have hit a 52 week low on a likely mining ban in iron rich regions of Chitradurga and Tumkur districts in Karnataka. The stock is down INR 10.55, or 4.74%.

The Central Empowered Committee has recommended an extension of iron ore mining ban to the districts of Chitradurga and Tumkur as well. Initially, the Supreme Court had put a ban only in the district of Bellary.

Speaking to CNBC-TV18’s, Mr PK Mukherjee MD of Sesa Goa said that according to CEC report, Chitradurga sector is a better sector compared to other sectors; however, the company will wait for the final Supreme Court order. He added that “Karnataka’s iron ore volume could be impacted by 25%.”

Q - How many tonne of iron ore mining would not be produced by Sesa Goa in the event of this ban?

A - We have to wait and see what Supreme Court decides when the matter is heard. We have seen the CEC report, which mentions extension of the same ban across the all talukas and districts of Karnataka. However, the report also says that Chitradurga sector is much better as compared to the other sectors.

Secondly, we will represent our matter in the Chitradurga sector along with the other mines and particularly for Sesa Goa, we will represent to the Supreme Court and we will await their judgment on this. The total impact of the ban will be about 10 to 15% on the EBITDA level.

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