The mining industry in Goa, the country’s second-largest producer and the largest exporter of iron ore, hopes for an early resolution of the illegal mining crisis under the new state government.
The new Bharatiya Janata Party (BJP) government will take charge next week, likely with Monohar Parrikar as the chief minister, at a time when a spate of irregularities in the mining and export of iron ore over the years has brought mining operations in the state to an all-time low.
“Parrikar was the first one to point out irregularities when he highlighted the gap between the value of iron ore exports from Goa and the royalty collection. So, we feel he will give a better governance that will rid the industry of illegal miners,” chairman of one of the four largest miners in Goa told Business Standard. “He has studied the matter extremely well,” he added.
He also informed that the industry is trying to make sense of Parrikkar’s recent statement that iron ore exports from Goa should not exceed 35 million tonnes (mt).
The miners are also planning to meet the new CM as soon as he assumes office next week, under the umbrella of the Goa Mineral Ore Exporters Association.
The concerns likely to be taken up include, eliminating fly-by-night operators, who are allegedly involved in irregularities, proposed canalisation of exports and infrastructure bottlenecks for transporting ore.
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Faced with the allegation of inability to check illegal exports of iron ore, the centre is currently working on a proposal to canalise all exports from the country through a government nominated agency like MMTC Ltd. The proposal has left the Goan miners concerned who think canalising could bring down volumes apart from disrupting prices.
Goa alone accounts for more than a half of the overall 100 mt iron ore exports from India. The state produced 35 mt last financial year and exported 54 mt, the rest 19 mt coming from dumps. Four companies including Vedanta subsidiary Sesa Goa Ltd, Fomento Resources, V M Salgaocar & Bro and Chowgule together account for a bulk of this production and exports.
This year, however, exports may take a major hit, thanks to the government’s crackdown on illegal mining activities and the state government’s recent order banning exports of dumps. “The state is likely to export at the most only 40 mt of iron ore this financial year. Exports stood at around 36 mt between April and January this year. This is a major concern,” another industry representative said requesting anonymity.