Sesa Goa has closed down the Thakurani mine in Orissa, India, because it could not renew mining contracts on viable commercial terms on a long-term basis.

The third-party mining contract expired on 30 November.

The mine started in 1999 under a ten-year contract and after its expiry in June 2009, the company began operating it on short-term renewals.

Thakurani mine is one of the oldest operating mines in the company’s portfolio and has produced over two million tons of iron ore in the financial year 2010.