Iron ore exports from India ? world’s third biggest supplier ? are likely to come down to 65-70 million tonnes (mt) from over 100 mt last year during this financial year. From Goa alone the exports are expected to fall by almost 10 mt from 54.42 mt to 45-50 mt by the end of this fiscal.
While some of this may be due to lower demand, the Goan miners including Sesa Goa, Fomento and VM Salgaocar fear that the exports will go for a toss if the government announces a blanket ban on mining similar to Karantaka. Goa mining is being probed by the Shah Commission which is expected to give its report by next month. The miners said that the ongoing inquiry has already put pressure on businesses.
?Goa was the top exporter last year. It may ship 45-50 million tonnes this year, down from 54.42 million tonnes in the year earlier period. If you see Goa’s contribution, then you can work out what impact a ban can have on exports,” PK Mukherjee, managing director, Sesa Goa told reporters on Monday.
Goa exported 19.76 mt in April to October period, which was 6.15 % lower than the same period a year before.
The iron ore mining in Goa has come under scanner over illegal mining. The Goa Mineral Ore Exporters’ Association (GMOEA) though agree that there may be some fly-by-night operators, their numbers could be limited. ?We do not deny that there are certain illegalities in mining and in particular in exports. However, a ban would hit entire industry,? he said.
The government has opted various measures to restrict iron ore exports. In it last budget, it hiked the export duty and another duty hike is expected in the next budget, taking it to a levy of 30%. The freight rates have also gone up by around 50%.