Team Herald

PANJIM: Iron ore export from Goa registered an almost 75 percent drop for the season compared to the corresponding months of October-November last year, with buyers seeking high grade ore. Ten mining lease have commenced operations till date. 

In a bid to sustain the industry, mining players have been seeking exemption of export duty on high grade ore by the Union government. Goa government has already petitioned the Union Ministry of Mines to slash the export duty on 60Fe content grade ore from existing 30 percent to zero percent, thus making it competitive for export.

As per information available from the Directorate of Mines and Geology, for the year 2016, exports in October-November were 2.84 million metric tonnes which has come down to 0.68 million metric tonnes for the same period this year. 

Consignments of iron ore from Goa are sent through Mormugao Port Trust (MPT). The season witnessed a delay in resumption of mining activities due to various reasons that also include falling prices for low grade ore, and a rise in demand for high grade mineral. 

Goa Mineral Ore Exporters’ Association’s Secretary Glenn Kalavampara said the buyers are seeking better grade ore which is above 58 percent grade. “Industry is really pressurised as it is facing a lot of difficulties. There is a demand for high grade ore but exports are not feasible due to the high export duty,” he said.

He said the industry wants the export duty to be lowered so that sending the consignment becomes possible.

When mining activity had stopped last season before the rains, as many as 41 iron ore leases were operational, that produced total 20 million tonnes of ore for the FY 2016-17 and another four million tonnes for the FY 2017-18.