Goa’s iron ore miners have sought withdrawal of export duty on ore with less than 58 per cent iron content as well as an amendment to the Mines and Minerals (Development and Regulation) Act to allow dumping of mineral rejects outside the lease area.
Mining activity has begun in around 15 of the 56 mines where leases were renewed after a two-and-half-year ban on mining in the State.
Iron ore is amongst the minerals which have suffered in the global commodity price slide. While global prices were above $100 a tonne prior to the ban, today the quality of iron ore produced in Goa costs around $35-40 a tonne in the international market.
Mining majors BHP Billiton, Rio Tinto and Vale are yet to cut production which has impacted smaller players globally. But, the Goa Mineral Ore Explorers Association remains confident of being competitive if export duty is withdrawn by the government.
“The expected quality of ore from these mines will be 56-57 per cent iron content. If the global price remains where it is at around $37-40 a tonne, we will be able to export it. But that is if the export duty is completely removed,” said Ambar Timblo, Managing Director of Fomento Resource, and a member of the Goa Mineral Ore Exporters Association.
He, however, added that he was not sure that production will reach the cap of 20 million tonne even after export duty is removed.
Meanwhile, on the issue of dumping mineral waste outside the leasehold area, Timblo said, “Internationally, the mining lease area is massive. Here in Goa, the largest lease is around 99 hectares. If we dump the mineral rejects within the lease area we won’t be able to work in the mineral bearing area.” “The only permanent solution is an amendment in the Act as the Supreme Court has also pointed it out,” he added.