Team Herald
PANJIM: Trying to break the deadlock in the resumption of iron ore mining activities in the State, the government is now considering approaching the Union Mines Ministry to seek further slashing of the export duty on the low grade ore from the existing 10 percent.
“We will look into the matter by taking up the issue (with Union Mines Ministry). The export duty can be either further reduced by 5 percent or withdrawn completely to boost the export of low grade ore from the State,” Chief Minister Laxmikant Parsekar told media persons on Saturday.
“100 percent issues cannot be resolved. The export duties were 30 percent and following our demand it was reduced to 10 percent. Now we will have to see if it can be reduced further,” Parsekar said, adding that the government is taking all necessary steps to ensure resumption of mining activities at the earliest.
Mine owners have been approaching the Central authorities, including Prime Minister Narendra Modi, demanding the removal of export duty on the ore, thereby helping the industry with additional revenue generation of around $750 million annually. The mining lobby claims that with the current taxation does not make the business feasible.
Goa produces iron ore with 55 to 58 Fe (ferrous content) and the State had been exporting this low grade ore mainly to China, until September 2012, when the industry came to halt following suspension of activities.
