From ARES
Daijiworld Media Network—Panaji (CN)

Panaji, Jul 3: The mining lobby in the state is apprehensive of a severe setback to the industry following the central government’s decision to impose 15 per cent export duty on iron ore.
 
The central government circular had said that the duty structure is being changed to further strengthen a policy regime that enables conservation of good quality ore and ensures its availability to domestic industry at a reasonable price.
 
The duty is applicable to iron ore, irrespective of its iron content and has come into effect from June 13, 2008.
 
Goa mineral ore exporters association (GMOA) president, Shivanand Salgaoncar, told reporters that this move will have a significant impact on the state’s iron ore sector. Briefing presspersons in the presence of chairman and managing director of Dempo group of companies, Srinivas Dempo, and P K Mukherjee, managing director of Sesa Goa, he cautioned that the increase in duty will force producers to stop low grade ore and its export which will in turn have a negative effect on the mining industry as well as the state’s economy.
 
Goa is India’s largest iron ore exporter with 105 active mining leases, and exports touching a mark of 33 million tonnes annually. Exporters contend that the current iron ore production in India is more than sufficient to meet the needs of the domestic steel industry. ‘There is in fact a large surplus of production over domestic consumption and there is ample availability of iron ore resources in the country,’ stated the GMOA president.
 
Salgaoncar said that any effort to curb export of iron ore, without matching domestic consumption for the ore currently produced, would severely affect the iron ore industry as well as the employment and economic activity dependent on it.
 
Mine owners and exporters have objected to the heavy tax on low grade ore as the domestic steel industry consumes high grade lumps and fines. ‘Goan iron ore is of lower grade which is unfit for consumption by steel industry, hence there is necessity of exports,’ he said. ‘They have no option other than export. These fines, if neither utilized within India nor exported, could pose environmental problems when stored,’ he warned.