Sesa expects to resume iron ore production in Goa in Sept

By Krishna N Das

NEW DELHI (Reuters) - Sesa Sterlite Ltd , India's largest private iron ore miner, expects to resume production in Goa in September following a court-imposed ban of nearly two years.

A pick up in supplies from the country's top iron ore exporting state could drag on prices of the steelmaking raw material in an amply supplied world market.

Sesa Sterlite sees its total iron ore output from India, where it operates in Goa and neighbouring Karnataka, jumping to 9.29 million tonnes in the current fiscal year to March 2015 from about 1.5 million last fiscal year.

Most of the output will be exported as Indian steel makers are not keen to buy the low-grade ore from Goa, Aniruddha Joshi, a vice president at Sesa Sterlite, told Reuters in an interview on Thursday.

The Supreme Court in April lifted the ban in Goa, which was aimed at curbing illegal mining, but ordered firms to renew mining leases and environmental clearances before restarting work. The court also capped Goa's total annual output at 20 million tonnes.

Goa rose to become India's biggest iron ore exporter over the past decade after China's insatiable steel mills started consuming even inferior grades, prompting many fly-by-night operators in the state to flourish with scant regard for rules.

(Additional reporting by Manolo Serapio Jr; Editing by Himani Sarkar)