According to an insider at India's largest privately-owned iron ore producer and exporter Sesa Goa, although India's Karnataka state has lifted its ban on iron ore exports, iron ore export activity from the state has remained suspended as the Karnataka government has not yet issued transportation permits.
Influenced by Karnataka state's ban on iron ore exports, it is anticipated that Sesa Goa's overall iron ore exports could drop by 15-16 percent in the fiscal year 2011-12. The interruption of iron ore exports from Karnataka caused Sesa Goa's net profit to decrease by 36 percent year on year in the quarter ended on June 30 this year.
Sesa Goa previously announced that it plans to increase its iron ore output capacity to 50 million mt by March 2013.