Herald: How confident are you about resumption of the mining industry in the coming season?
Shivanand Salgaocar: I am very hopeful of starting fresh excavation by October-November. Getting the various approvals is ‘work in progress’. It seems that the authorities are working within the time frame set by the CM who is very keen that fresh mining resumes by the end of the monsoon season given the disastrous impact the stoppage has had on the Goan economy for past three years.
Herald: So you feel that there are no major concerns before mine owners?
Salgaocar: Yes there are some major concerns like falling international market prices, capping of 20 million tonnes and the levies imposed by the government on auctioned ore.
Herald: Can you elaborate in detail on these concerns?
Salgaocar: See, the iron ore market has been very volatile and the prices are expected to fall further due to a strategy being followed by Rio, BHP (Australia) and Vale (Brazil) of flooding the market since they all have built up large capacities and would be profitable even if the prices fall to USD 30 per tonne. They want to control the market and preserve their share even if the demand falls. Secondly, all the supporting service providers like truck owners, barge owners, and machinery hirers must realize that the cake has shrunk from 54 million tonnes to 20 million tonnes. Hence there are sacrifices to be made by all of us. The charges/rates have be competitive given the current market conditions.
Thirdly, the state government had imposed new levies for auctioned ore which have to be scrapped if fresh mining has to be economically viable in the current depressed market conditions. Also, government has to auction the balance 9/10 MT of ore and most importantly ensure that it does not continue to ‘sit’ on the jetties or mines. It should be moved by the bidders so that fresh ore be stocked.
Herald: Despite you yourself identifying so many major issues, you are still confident that mining will resume by this season?
Shivanand: I am hopeful as the government looks positive.
