PANAJI: Mining industry in Goa has raised concerns over Union steel minister Dharmendra Pradhan’s statement that the Centre is not ruling out the possibility of banning iron ore export following the crisis in the domestic market. Presently, the mining industry in Goa is struggling to regain its international market.
Mining activities came to a halt in Goa in March 2018 after the apex court quashed the second renewal of 88 leases. However, the state government is leaving no stone unturned to restart mining.
Pradhan was interacting with the members of the merchant chamber of commerce and industry (MCCI) via webinar. The stakeholders sought intervention of the ministry to solve the scarcity of ore.
“Banning export is solely for the benefit of private players. Today, higher the sale price of ore, the higher will be the royalty and taxes, where the government stands to gain. Ban reduces the earnings of the government and hits the economy, but helps the financials of the private steel sector,” Goa Mineral Ore Exporters Association (GMOEA) president Ambar Timblo said.
“Few shipments last season were helpful in re-establishing the market for Goan ore in the international market, though it was a Herculean task. Any ban, even if temporary in nature, will create an uncertainty in the minds of customers. It may become impossible to re-enter that market. Arguably, there is an extremely limited market for such low-grade iron ore,” Vedanta Sesa Goa CMO Nikhil Kulkarni said.
He added that ore from Goa was traditionally exported owing to the quality which makes it difficult for the local steel makers to use it. Also, India is a surplus iron ore market and there is abundant availability of medium and high-grade ore across states.
Ore extracted in Goa is inherently of lower Fe value. Generally, less than 56% Fe fines are not accepted by the domestic steel manufacturers. Low grade ore used to be primarily exported due to its economic non-usability in the domestic steel industry.
As the Goan origin ore is less than 58 grade, Union government had exempted it from export duty in 2015. The step was taken by the then Union finance minister after persistence of former chief minister of Goa and then defence minister Manohar Parrikar.