23 Apr 2023  |   05:45am IST

Will iron ore mining restart this year?

From being the largest contributor to State revenue over a decade back, Goa’s mining sector today is struggling to survive as iron ore mining has been stalled ever since the Supreme Court cancelled 88 mining leases in the state on February 7, 2018. It has affected nearly 3 lakh people, who have been directly and indirectly dependent on mining. There is extreme pressure on the State government to restart iron ore mining activities to salvage the deteriorating financial health of Goa. SHWETA KAMAT finds that although the government appears confident of restarting the iron ore activities from this year, it may not be as simple as it seems
Will iron ore mining  restart this year?

It was over a decade back, when Goa’s mining sector was the largest contributor to State revenue or gross domestic product. The sector that flourished between the years 2007 -2011 is today crippled and facing challenges on multiple fronts. 

From the issues of illegal and unscientific mining, environment and statutory process violations to fighting legal battles, the problems are aplenty surrounding the industry. 

But, the BJP-led State government is once again looking forward to reviving the industry in a bid to revitalize the State's crumbling financial condition. With the aim of generating Rs 1,000 crore revenue in current financial year, Chief Minister Pramod Sawant appears fully confident of restarting the iron ore activities from this year, most probably in the new season, post monsoon.

However, the experts from the field are casting doubts about achieving the target. They feel that it is almost unlikely for the industry to kick off coming season. Though, the State government has auctioned four iron ore blocks while five more are lined up, seeking all the requisite permissions to run the mining – be it clearance from the Indian Bureau of Mines (IBM), Goa State Pollution Control Board (GSPCB), Union Ministry for Environment, Forest and climate change (MoEF&CC) will take nearly two to three years. Further, the miners will have to regain the confidence of its international buyers, who have already opted for alternate suppliers.

Certain about this fact, in the first phase, the government is aiming to put up iron ore dumps for e-auction, thereby resuming mining activities, generating business for truck operators and also creating employment opportunities. However, the Mines department is still in the process to identify the quantum of dumps lying in the lease bound areas and those outside the leases. According to the data released years back, State has around 750 million tons of ore in the form of rejects.

In the first phase of 

e-auction held in 

December, last year, total four leases - Kalay mining block in Sanguem, Bicholim-Mulgo mining block, Shirigao- Mayem mining block and Monte-de-Sirigao mining block in Bicholim were sold out with State generating revenue in form of upfront auction premium of nearly Rs 43.18 crore.  These mines have got approximately 135 million tonnes of iron ore resource for e-auction.

Currently, the process is ongoing to e-auction five leases Advalpale-Tivim Mineral Block, Cudnem-Cormolem Mineral Block, Tivim-Pirna Mineral Block, Cudnem Mineral Block and Surla-Sonshi 

Mineral Block. As per the Mines department, three of these leases do not required Environment Clearances (EC) as the leases are categorized under Section 8B of Mines and Minerals (Development and Regulation) (MMDR) Act 1957 which speaks about transfer of statutory clearances vested with the previous lessee for a period of two years.

As such, according to the department, the fresh mining extraction at these three leases  —  Advalpale-Tivim Mineral Block, Cudnem-Cormolem Mineral Block and Tivim-Pirna Mineral Block — can commence within a shortest span of time from the day of declaration of the successful bidder which is expected to be any time before April 28. But the petitioner, Goa Foundation, does not feel so as the same is being challenged before the High Court.

“Whether some leases can operate on the basis of environment clearances issued under the 2006 Environment Impact Assessment (EIA) notification and claiming rights under Section 8B of the MMDR Act, 1957 (which means they do not have to go for fresh environment clearances) is a matter awaiting judgment of the Bombay High Court at Goa, which has heard a petition filed by Fomento, claiming this is against the findings and directions issued by the Supreme Court’s judgments in the Goa Foundation cases,” petitioner and activist Claude Alvares said.

“Till that judgment is delivered, we cannot make any predictions and all the procedures will have to be followed,” he explained.

Alvares said that nothing will happen this year even after the monsoon, when the 2023 mining season should start. “For this, blame the Goa government since it did nothing for four years, after the Supreme Court issued its judgment cancelling 88 second renewal orders on February 7, 2018,” he said.

In the opinion of the Goa Foundation, all the auctions are badly done, lack transparency, and indicate large scale fixing. 

“At this stage, it is not known whether any of the four mining blocks successfully auctioned will also face resistance when they are put up for public hearing. Three blocks are in Shirgao village, whose environment has been severely disrupted and damaged by earlier lease holders,” Alvares said, adding, “so far no permissions are considered for dump e-auction.”

Committee member of the Federation of Indian Mineral Industries (FIMI) and mine owner Harish Melwani said, “Anything is possible, provided the government is willing to do it with proper policies in place. However the same is lacking.” 

“The government does not seem to be serious on the mining front. All it is looking at is the revenue front, without giving any proper thinking about the factual situation which is challenging,” Melwani said adding, “this year, it is just impossible for mining to restart…we can think about it maybe next year.”

He said that it is very important that the government put in place long-term policies to attract larger investment in the mining sector. 

“Unless there are long term policies in place, no big companies will come forward to invest in the mining industry, which is a long run industry. The government will also have to put in place stringent measures and mechanisms to ensure that past mistakes are not repeated,” he said.

Melvani explained that Goa has lost the China market by ditching them with no supply for the last ten years. 

“So now we will have to rebuild the confidence with China and assure that we will not ditch them again. The Chinese market is already captured by other players,” he said.

While for experts it looks mere impossible for mining activities to resume this year, the industry dependents want the government not to fool them ahead of Lok Sabha polls. 

“With every election coming in, the government makes false promises. The day work starts at the mining site, our trucks get business and our youth get jobs, only that day we will accept that mining has finally commenced,” truck owner Balaji Gawas said.

He appealed to the government not to play with the sentiments of the people by making false promises just for garnering votes. “We have waited for ten long years now. We can wait for another one year but make sure that once it starts, there is no stopping,” Gawas said.


IDhar UDHAR

Iddhar Udhar