The Goa Mineral Ore Exporters’ Association (GMOEA), representing key stakeholders in the Goan mining sector for more than 60 years, has expressed serious concern over recent speculation regarding the possible extension of export duties to low-grade iron ore (below 58% Fe). The Association urged the Government of India to reconsider any such move, stressing that it could severely disrupt mining operations in Goa, where iron ore is predominantly of low grade. Given the region’s unique mineral profile and the lack of domestic demand for such ore, the GMOEA warned that imposing export duties would not only jeopardise livelihoods and regional economic activity but also result in stockpiling and wastage of a valuable natural resource.
The representation to the government follows media reports suggesting the possible extension of export duties to low-grade iron ores (below 58% Fe). Goan iron ore, being largely low-grade, is unsuitable for domestic steelmaking, where higher-grade ore from eastern India or Bellary is preferred due to cost efficiency. Using Goan ore in steel production increases costs, particularly because of the higher consumption of imported coking coal.
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Additional logistics expenses from Goa further reduce its competitiveness, even in export markets, states a press release. Even local pig iron units depend primarily on imported or non-Goan ore.
As a result, Goan iron ore has historically been export-oriented, with little domestic demand. Extending export duties to Goa, therefore, would yield minimal national benefit while imposing severe hardship on the state’s mining sector, the GMOEA said. If an export duty is imposed, Goa could face revenue losses exceeding Rs 800 crore annually at current production levels from just three operational mines. With more mines expected to commence operations, these losses will only multiply, further discouraging participation in upcoming auctions.
