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Efforts on to end strike at Sesa Goa

Our Bureau

MUMBAI, Aug. 16

THE two major mines of leading Goan iron ore exporter, Sesa Goa Ltd (SGL), continue to remain closed.

SGL is understood to be insisting that workers sign an undertaking that they would abide by rules, as a pre-requisite to commencing operations at the Sonshi and Codli mines.

Operations at the two mines have been suspended since July 9, following violence that saw one general manager being assaulted by agitating workers. Unionised labour at Sonshi and Codli is roughly 800-strong.

SGL first informed the Bombay Stock Exchange of its employee agitation, then described as a 72-hour illegal strike, on July 12. The company, which is 51 per cent owned by Mitsui of Japan, is Goa's largest iron ore exporter.

Around April/May too, SGL's employees had resorted to a strike which lasted about a fortnight.

When contacted, a senior SGL official said today that discussions to solve the persisting labour problem at its two mines were going on. The Labour Commissioners at Panjim and Vasco are both involved in the talks.

``We want to ensure safety of the mines, in terms of personnel, plant and machinery,'' he said of the company's decision to seek an undertaking from workers. Operations elsewhere, at the company's pig iron plant, coke plant and ship building yard, were n ormal, he said.

The Sonshi and Codli mines account for almost all of SGL's iron ore production of over 4 million tonnes in Goa. The company's other mines in Karnataka and Orissa cumulatively fetch an additional volume of less than one million tonnes.

Impact of closure is muted for the moment, courtesy the monsoons, traditionally a slack season for ore exports. The export season opens by mid-September. For the same reason, the official discounted any possible estimation of loss arising from the strike .

However, the mines are usually prepared during the rains for the export season, which work has been delayed by the labour stand-off. To overcome the delay, it is estimated that SGL may have to hire additional equipment as and when the current problems en d.

Should the labour problem persist through next month, then SGL - which does have iron ore stocks - could be called upon to source supply from other Goan exporters, the official said, adding that such give and take is ``common'' in the iron ore export fra ternity.

The SGL scrip had closed trade at the BSE on Tuesday at Rs 52, down marginally from the previous close of Rs 52.50.