Indian iron ore producer Sesa Goa, a subsidiary of India-based Vedanta group, will shut down two plants in Goa due to an iron ore shortage as transportation has stopped because of the monsoon season, according to local media sources.
The company plans to close down its pig iron plant and metallurgical coke plant situated in the village of Amona in Bicholim Taluka, possibly affecting 1,200 employees working in both plants. The plants will be shut down since they are running out of raw material stocks, since the company is not able to get iron ore from its own Codli mines in South Goa.
The closure will reportedly affect the power supply to the state, as the state government buys 14-16 MW power from Sesa Goa's gas-based power plant.
Sesa Goa's expansion plans targeting a doubling of the current 2.8 million mt capacity of met coke are also going to be affected, according to a company spokesperson.