Sesa Goa buys Dempo Mining for Rs 1,750 cr

The Rs 5,000-crore iron ore mining major, Sesa Goa, has acquired another Goa-based iron ore mining company – Dempo Mining Corporation for Rs 1,750 crore.

Dempo Mining, a wholly-owned subsidiary of V S Dempo & Co, has iron ore reserves of around 50 million tonnes and currently produces and exports around 3 to 4 million tonnes iron ore.

Sesa Goa, a listed entity on the Bombay Stock Exchange, has iron ore reserves of around 150 million tonnes. The combined entity would emerge as one of the largest iron ore exporters in the country.

Dempo Mining has 19 mining leases spread over about 1,800 hectares in Goa. The company has also decided to venture into other mineral rich states and has signed memorandum of understanding with Maharashtra and Jharkhand governments.

In April 2007, Anil Agarwal-controlled Vedanta Plc acquired 51 per cent stake in Sesa Goa, for a little over Rs 4,070 crore. On Tuesday, its share price went up by 6.7 per cent to close at Rs 192.10, resulting in a market capitalization of Rs 15,122 crore.