Team Herald

PANJIM: The Directorate of Mines and Geology (DMG) confirmed that the iron ore mining season is yet to commence in the State with not a single mining lease holder resuming activities. 

DMG Director Prasanna Acharya said that no mining activities have begun in the State. “Till now, no mine has started operation,” he said. 

The falling prices of low grade iron ore in the international market coupled with high taxation is attributed as the prime reason for the reluctance of mining players to commence the activities. 

The mining was temporarily suspended from June 1 owing to the monsoon season, with the DMG banning fresh extraction and transportation. The new season was supposed to commence from October 1, but it is yet to kick off.

DMG records state that from October 2016 to February 2017, 41 mining leases commenced operation. The royalty earned was around Rs 300 crore.

The ore prices which was at $ 94.5 per tonnes till February, has dropped to $50-$60 per tonnes. As such, the market for low grades is getting tough, as most steel mills are focusing on higher grades to increase productivity. Further, Goa’s largest market China is now being captured by other low grade producing countries like Australia and Brazil.

Meanwhile, the truck owners from North Goa have pleaded before the Chief Minister Manohar Parrikar to ensure that all the mines in the Northern belt resume operations. Especially, the mining activities in Sonshi in Sattari taluka need to commence. 

“We have asked the chief minister to restart all the mines in North, especially the mining activities in Sonshi. The operation of Sonshi mines is suspended; we want government to clear it,” the truck owners demanded. 

The operation of 12 out of 13 mining leases in Sonshi was suspended in April for violation of environmental norms. The Goa State Pollution Control Board (GSPCB) has recently agreed to grant consent to operate to seven mines in Sonshi, which is likely by next week. 

The remaining six mines will continue to stay under suspension for having invalid environmental clearance.