In an appeal to the Prime Minister and the Finance Minister to save Goa’s iron ore industry from collapse, the association has pointed out that the “export duty and high levies with almost 80% drop in prices make iron ore mining in Goa unviable.” It contended that the prices of 58% Fe content iron ore fines had drastically fallen by 80% internationally in the last few months.
Pointing out that more than one lakh families dependent on mining have suffered for the last 30 months while 10,000 trucks and 300 barges are awaiting restart of mining in Goa, the advertisement stressed that exports of low grade ore from Goa, which is not useful in India, can bridge trade deficit, particularly when India imported 15 million tonnes of iron ore in the last fiscal and spent over $1 billion worth foreign exchange.
It said: “The recently passed MMDR Act has the intent to kickstart the mining industry once again. But unless levies are abolished, mining won’t be able to resume in Goa.”
The advertisement goes on to point out exorbitant burden of over 70 per cent taxes on the iron ore mining industry in Goa: 30% export duty, 15% royalty, 15% MMDR imposed District mineral fund (equal to royalty), 10% for Goa Permanent Ore Fund, Goa’s transport cess (2%) and 2% of royalty for National Mineral Exploration Trust.
