Sesa Goa is trading lower by 3% at Rs 197, extending Friday’s 6% fall, after the company said it will have to stop mining in the Chitradurga district of Karnataka following Supreme Court's latest order. The annual permitted capacity of the said mine is 6 million tonnes.
“The order dated August 26, 2011 was passed by the Hon'ble Supreme Court in Writ Petition (Civil) No. 562 of 2009 banning mining activities in Chitradurga and Tumkur Districts of Karnataka. In view of this order, the mining activities in the company's mine in Chitradurga of Karnataka will have to be stopped with immediate effect and thus it will adversely affect to some extent the performance of the company," a Vedanta Group company said in a filing to the stock exchanges.
The stock opened at Rs 202 and hit a low of Rs 195 on the NSE. A combined 2.2 million shares have changed hands on the counter till 1020 hours.