Panaji: Goa's mining industry is in a recessionary phase as the ore export have fallen by over 76% in the first two months of current season compared to the corresponding period of the previous year.
According to Goa mineral ore exporters association (GMOEA), the industry exported 2.84 million tonnes of iron ore in October-November last, but it came down to 0.68 million tonnes this year for the corresponding period.
"Buyers in China and Japan seek higher grade. Generally, Goa exports below 58 grade ore, which is exempted from export duty,'' a member of association said.
A source said that companies can improve upon grade through beneficiation plants, but it will not be feasible for them to export as it will attract 30% export duty.
Speaking to STOI, association secretary Glen Kalavampara said that the industry needs duty exemption of at least 60% to survive the current competition. He sought government intervention in this matter on a priority basis.
Industry had approached the Centre to do away with the export duty on ore of up to 60 grade, which is now 30%.
A source said that Goan ore is not useful for domestic consumption and even if it is bought by domestic steel industry, the transportation cost would be much higher and even surpass the expenses incurred on cargo export to China and Japan.
Goa faces a tough competition from countries such as Australia, Brazil, South Africa, Iran and Canada. During the peak year before the mining industry operations came to a halt owing to illegalities, Goa had exported nearly 50 million tonnes of ore.
In April 2014, Union finance minister Arun Jaitley had reduced the export duty for ore below 58 grade from 30% to 10% and not lumps. Subsequently, industry had made a representation to Jaitley to remove this ambiguity. In February 2016, he had exempted ore below 58 grade from export duty.
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(Original)
Panaji: The Goa mining industry is in shamble as the iron ore exports have fallen down to 75 percent in first two months of the mining season as compare to two months of last mining season. The Goa mineral ore exporters association (GMOEA), the main trading body of mine owners said that this year in the month of October and November they have exported 0.68 million tonnes iron ore whereas last year during similar months they have exported 2.84 milllion tonnes.
The buyers in China and Japan want the Goan iron ore to be improved. General Goa exports below 58 grade iron ore on which export duty is exempted. Source said that if the mining companies improve the iron ore grade through beneficiation plant, iron ore grade will increase but it would not be feasible to export at it will attract 30 percent export duty.
Speaking to STOI, GMOEA secretary Glen Kalavampara said that the buyers are seeking better grades that is above 58 percent. "Industry request for exemption export duty at least upto 60 percent for Goan ore. This is needed for industry for survive. It is hope that government address this issues urgently," he added. "Iron ore exports have been fall of over 75 percent," Kalavampara said.
Mining industry had approached the Union government to bring down the export duty on iron ore of upto 60 grade from the existing 30% to 0%.
Source said that Goan iron ore is not useful for domestic consumption and even domestic steel industry start buying Goan iron ore then the transportation cost would be double that of the cargo exported to China and Japan.
Goa also faces tough competition from Australia and Brazil, and to a smaller extend from South Africa, Iran and Cananda, countries that have recently started exporting ore.
During the pick year before the iron ore industry was stopped in the state for illegal mining, Goa had exported nearly 50 million tonnes.
April 2014, Union finance minister Arun Jaitley had to reduce the export duty on iron ore below 58 grade from 30% to 10% and not lamps. Goa mining industries had made a representation to finance minister to remove this ambiguity. In February 2016, the Union finance minister exempted export duty on iron ore below 58 grade.
According to Goa mineral ore exporters association (GMOEA), the industry exported 2.84 million tonnes of iron ore in October-November last, but it came down to 0.68 million tonnes this year for the corresponding period.
"Buyers in China and Japan seek higher grade. Generally, Goa exports below 58 grade ore, which is exempted from export duty,'' a member of association said.
A source said that companies can improve upon grade through beneficiation plants, but it will not be feasible for them to export as it will attract 30% export duty.
Speaking to STOI, association secretary Glen Kalavampara said that the industry needs duty exemption of at least 60% to survive the current competition. He sought government intervention in this matter on a priority basis.
Industry had approached the Centre to do away with the export duty on ore of up to 60 grade, which is now 30%.
A source said that Goan ore is not useful for domestic consumption and even if it is bought by domestic steel industry, the transportation cost would be much higher and even surpass the expenses incurred on cargo export to China and Japan.
Goa faces a tough competition from countries such as Australia, Brazil, South Africa, Iran and Canada. During the peak year before the mining industry operations came to a halt owing to illegalities, Goa had exported nearly 50 million tonnes of ore.
In April 2014, Union finance minister Arun Jaitley had reduced the export duty for ore below 58 grade from 30% to 10% and not lumps. Subsequently, industry had made a representation to Jaitley to remove this ambiguity. In February 2016, he had exempted ore below 58 grade from export duty.
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(Original)
Panaji: The Goa mining industry is in shamble as the iron ore exports have fallen down to 75 percent in first two months of the mining season as compare to two months of last mining season. The Goa mineral ore exporters association (GMOEA), the main trading body of mine owners said that this year in the month of October and November they have exported 0.68 million tonnes iron ore whereas last year during similar months they have exported 2.84 milllion tonnes.
The buyers in China and Japan want the Goan iron ore to be improved. General Goa exports below 58 grade iron ore on which export duty is exempted. Source said that if the mining companies improve the iron ore grade through beneficiation plant, iron ore grade will increase but it would not be feasible to export at it will attract 30 percent export duty.
Speaking to STOI, GMOEA secretary Glen Kalavampara said that the buyers are seeking better grades that is above 58 percent. "Industry request for exemption export duty at least upto 60 percent for Goan ore. This is needed for industry for survive. It is hope that government address this issues urgently," he added. "Iron ore exports have been fall of over 75 percent," Kalavampara said.
Mining industry had approached the Union government to bring down the export duty on iron ore of upto 60 grade from the existing 30% to 0%.
Source said that Goan iron ore is not useful for domestic consumption and even domestic steel industry start buying Goan iron ore then the transportation cost would be double that of the cargo exported to China and Japan.
Goa also faces tough competition from Australia and Brazil, and to a smaller extend from South Africa, Iran and Cananda, countries that have recently started exporting ore.
During the pick year before the iron ore industry was stopped in the state for illegal mining, Goa had exported nearly 50 million tonnes.
April 2014, Union finance minister Arun Jaitley had to reduce the export duty on iron ore below 58 grade from 30% to 10% and not lamps. Goa mining industries had made a representation to finance minister to remove this ambiguity. In February 2016, the Union finance minister exempted export duty on iron ore below 58 grade.
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