Mineral exploration companies in Goa have warned that iron ore exports from the state are likely to experience a sharp decline this year due to the ongoing row over illegal mining, with overseas shipments plummeting even before the mining season formally kicked off in mid-September.
According to industry players, exports fell almost 50 per cent during the monsoon this year in comparison to the previous year.
“The worries about decreasing exports were discussed recently at a meeting of stakeholders called by the Mormugao Port Trust (MPT),” highly placed sources said.
MPT accounts for bulk of iron ore exports from India. Although the mining season began in mid-September, activity is yet to gain momentum.
Fears are being raised that the Government’s directive to companies not to re-handle dumps of poor quality iron ore that have accumulated at pitheads across the state will lead to a further drop in exports.
Official figures available from MPT and Panaji minor port indicate that one lakh tonnes of ore were exported in July last year, whereas this year, only 923 tonnes of ore was routed through the two ports.
Exports were also down in August this year, with only 237 tonnes of ore shipped overseas in comparison to 463 tonnes last year.
The Goa Pollution Control Board has asked around 40 mines in the state to suspend their operations in the absence of consent under the Air and Water Pollution (Control) Act.
“If there are closure of mines then the exports will continue to be at a similar pace,” a senior industry source said, adding that it would be difficult to achieve production of even 30 million tonnes of iron ore this year against 54 mt last financial year.
As per data, ore exports from Goa have been down since the beginning of the 2011-12 financial year, when the Karnataka mining crisis had a ripple effect on the industry in the state.
Iron ore exports in April 2011 stood at 4,767 tonnes against 5,566 tonnes in the corresponding period last year.