India orders Sesa Goa to shut coke unit on pollution

Reuters News
Posted: Aug 28, 2012 7:06 AM

By Siddesh Mayenkar

MUMBAI (Reuters) - Sesa Goa, owned by miner Vedanta Resources, must shut its 280,000 metric tons per year metallurgical coke unit in western Goa state after complaints about pollution, a State Pollution Board official said.

Shares of Sesa Goa extended losses by 3.73 percent at 180.45 rupees per share on the news.

"We have issued directions for closure of the coke unit of Sesa Goa," Levinsons Martins of the Goa State Control Pollution Board told Reuters.

The board has also called for a report from an environment ministry department on air and land pollution to be delivered in 7 days, the official said. The plant would remain shut at least until then.

Sesa Goa said it had not received any order yet.

"We are yet to receive any notice, so commissioning is still on," said P.K. Mukherjee, managing director.

Metallurgical coke is an ingredient for making steel.

About 35 percent of the metallurgical coke produced by Sesa Goa is sold to local steel makers, while the rest goes into its own blast furnaces for production of pig iron.

India's coke industry, which is dominated by integrated steel plants, is estimated to be at 67 million metric tons.

(Reporting by Siddesh Mayenkar; Editing by Jo Winterbottom)