Goa's iron ore exports decline

Total shipments from the mining rich coastal state fell by 12 per cent.

The collapse of a shiploader at Mormugao Port Trust (MPT), coupled with higher export levies and closure of mines, has resulted into a 12 per cent decline in iron ore exports from Goa in the first nine months of this financial year.

Total shipments from the mining rich coastal state, which constitute about 35 per cent of India's iron ore exports, fell to 22.58 million tonnes during the period as compared with 25.54 million tonnes in the corresponding period in FY07.

While the exports of lumps (less than 64 per cent iron content) fell 30 per cent to 4.53 million tonnes from 6.57 million tonnes, that of fines (with 64 per cent-plus iron content) declined 5 per cent to 18.05 million tonnes from 18.97 million tonnes.

Glenn Kalavampara, secretary, Goa Mineral Ore Exporters' Association (GOMEA) said the decline in exports was anticipated as one of the two shiploaders at berth No 9 at MPT, which collapsed in September last year, was expected to restart operations only by November.

However, the testing of the shiploader is in progress, resulting in a clogging of freight traffic.

Besides, a longer monsoon this year hampered some early shipments because of low labour turnout.

Poor road and rail infrastructure also stalled movement of ore to the port from other states, including Karnataka.

Last year, the government levied an export duty of Rs 300 a tonne across all ore categories but was later brought down to Rs 50 a tonne on fines.

Meanwhile, activities in 16 out of 18 iron ore mines in Goa, which were closed about two months ago on environmental concerns, have begun.

The shipments from these mines are also expected to start soon which are likely to boost exports in the last quarter of the current financial year.

Iron ore mining is a major industry in the state with exports of around 35 million tonnes annually, earning nearly Rs 2,000 crore in foreign exchange.