OREANDA-NEWS. October 7, 2011. Sesa Goa Limited ("SGL" or the "Company") today announced its production release for the second quarter ("Q2") and half year ended ("H1") 30 September 2011.

During Q2, iron ore sales were 1.55 mt as compared with 1.82 mt (1.37 mt excluding Orissa) in the corresponding prior quarter. During H1, sales were 5.80 mt as compared with 6.71 mt (5.65 mt excluding Orissa) in the corresponding prior period. Sales were benefitted by higher volumes at Karnataka prior to the imposition of the Karnataka mining ban.

On 26 August 2011, the Supreme Court ordered a ban on iron ore mining and direct sales in Karnataka. The Court has currently ordered a study by government agencies and also allowed the sale of inventory by e-auction through appointed agency.

At Karnataka, we sold 0.71 mt of iron ore in Q2, and 1.81 mt of iron ore in H1, as compared with 0.45 mt and 0.95 mt in the corresponding prior periods. At Goa, we sold 0.83 mt of iron ore in Q2, and 3.98 mt of iron ore in H1, as compared with 0.92 mt and 4.71 mt in the corresponding prior periods.

During Q2, iron ore production was 1.12 mt as compared with 2.88 mt (2.43 mt excluding Orissa) in the corresponding prior quarter due to the ban on mining in Karnataka announced on 26 August 2011, the discontinuation of operations at Orissa in November 2010, and most importantly, the planned reduction in inventories. During H1, production was 5.51 mt as compared with 8.61 mt (7.61 mt excluding Orissa) in the corresponding prior period.

In August 2011, we completed the acquisition of a 51% stake in three iron ore assets in Liberia, with 1 billion tonnes of R&R, for a consideration of USD 90 million. Sesa Goa will work on developing these assets in the emerging iron ore hub of Western Africa.