Sesa’s aim is to be a leading global low-cost producer of iron ore, with an impeccable track record of operational safety, while maximising shareholder value. With this driving commitment, teams at Sesa are working towards achieving excellence through a systematic approach to exploration and mining, continuously seeking innovation in operations and technological up-gradation of its processes.

Sesa’s primary business is iron ore. It is engaged in exploration, mining and processing of iron ore, with domestic mining operations carried out in the states of Goa and Karnataka in India. In FY 2012, it has extended its operations to Liberia in Western Africa, in line with its above aim to deliver greater stakeholder value by scaling up operations through organic / inorganic growth. The acquisition and development of Western Cluster Limited will unlock significant benefits for all its stakeholders, including shareholders, employees and, importantly, the communities in which it opereates.

The Company has diversified operations into manufacturing of metallurgical coke and pig iron, operated as independent businesses of Met Coke Division (MCD) and Pig Iron Division (PID) respectively. It embarked on a capacity expansion programme during 2010-11 in both these businesses; the completion of this new pig iron facilities will make Sesa the largest producer of low phosphorus pig iron in India with an installed capacity of 0.625 mtpa. Charts 3 and 4 depict the share of each of these operating businesses in Sesa’s consolidated external revenues and consolidated profits (profit before tax, interest, dividend and nonallocable items) respectively.

Iron Ore:

This is Sesa’s core business segment and contributed to 89% of consolidated external revenues and 98% of segment profits in 2011-12. The Company has a niche positioning with cost-competitive iron ore mines that are relatively nearer to ports with part of the distance covered by waterways, to support the global seaborne iron ore trade.

Pig Iron:

This business, carried out through the independent business unit PID, contributed 9% to total external revenues in 2011-12 and its share in segment profits was 1.5%. The business focuses mainly on the domestic Indian market, especially on foundries and steel mills in western and southern India. It has also extended its reach in the exports market to the Middle-East and South East Asia countries.

Met Coke:

The met coke business is primarily a backward integration initiative to support the pig iron business, with 62% of its sales to the PID, and the balance sold externally. During the year 2011-12, it contributed 2% to total external revenues and its share in segment profits was 0.5%. A detailed perspective of developments in each of these businesses is given in the ensuing part of the report.