As many as 2.55 lakh shares were traded in the counter on BSE.

The Sesa Goa scrip has tanked 23.50% to the current level from 1995.90 on 26 February 2007 after the government imposed a duty of Rs 300 per tonne on exports of iron-ore last week, in Budget 2007-08. This will raise tax-burden on Sesa Goa, which relies heavily on exports for revenues.

As per recent report, Brazilian miner CVRD and mining giant Rio Tinto may pull out of the race for Mitsui's 51% stake in Sesa Goa after the new tax regime.

Earlier as per media reports, Brazilian miner CVRD, steel maker Arcelor Mittal, Vedanta Resources and Aditya Birla group had been shortlisted for the final round of bidding for Mitsui's stake. The four companies were shortlisted from six, who submitted their bids on 19 February 2007. They will be allowed to visit plants of Sesa Goa in the second week of March 2007, before submitting their final bids by the end of the same month, a newspaper report said on Wednesday.

The successful bidder will also have to make an open offer to Sesa Goa shareholders to buy a further 20% stake.

Sesa Goa's annual exports amount to around 5 million tonnes out of Marmagao, Chennai and Paradip port. It supplies iron-ore to China, Japan and Europe, and is also the sole supplier of iron ore to Pakistan Steel Mill, the only steel manufacturing unit in that country.

The Indian steel and sponge iron industries have been strongly lobbying for restricting iron-ore exports, not only to conserve the ore for India’s domestic needs, but also to reduce high prices of domestic ore (particularly the small sponge iron producers). The government’s decision to levy export duty, however, may not impact local iron-ore prices.

The Sesa Goa scrip had spurted over the past few months on hopes of aggressive bidding for Mitsui's 51% stake in the company, which the Japanese firm has put on the block. From Rs 1186.35 on 20 December 2006, Sesa Goa spurted to Rs 1947.85 by 27 February 2007.

Sesa Goa reported a net profit growth of 23% to Rs 194.94 crore for Q3 December 2006 versus Rs 157.85 crore in Q3 December 2005. Net sales for the December 2006 quarter rose 15% to Rs 587.89 crore (Rs 510.37 crore).