PANJIM: It’s October and though the State’s major mining firms had announced they would commence extraction of iron ore this month, uncertainty on resumption of mining continues.
Considering the falling prices of low-grade ore in the international market and with nearly 7.5 million tonnes of extracted ore lying unsold at jetties, leases and other identified plots, there is no date that can be fixed as to when actual fresh iron ore extraction will begin.
Added to this is the challenge before the Supreme Court of the second renewal of 88 leases, wherein the petitioner has demanded an interim stay on these lease operations. The petition is expected to be heard next week.
Speaking to Herald, Goa Mineral Ore Exporters Association (GMOEA) secretary Glenn Kalavampara said mining companies have initiated preparatory acts to begin mining related activities this month. “However, it will not be possible to say exactly when the actual extraction process will begin,” he said.
The State’s leading mining firms like Vedanta, Fomento Resources, V M Salgaocar Brothers and Chowgule have announced resumption of their business from this season.
However, the biggest hurdle in the resumption is the 7.5 million tonnes of ore lying unsold. The government had identified 15 million tonnes of extracted ore (prior to September 2012 ban) for export. The Supreme Court has directed fresh production cannot commence until this ore is sold via e-auction.
Directorate of Mines and Geology (DMG) through Metal Trading Corporation (MTC) has until date undertaken 12 e-auctions. Of the 15 million tonnes, the government has e-auctioned 7.5 million tonnes, of which only 2.486 million tonnes of ore have been transported of which a few lakh have been exported to China. The balance 5 million tonnes of auctioned ore continue to lie at the sites and jetties.
The falling international market prices of low-grade ore are another deadlock in resumption and have restricted bidders from transporting their ore.
“With lower prices and high taxation it becomes challenging to move out the ore and these needs rationalization of taxes,” Kalavampara said.
Kalavampara said the double taxation on the industry is adversely affecting the business, especially when the international market is showing no signs of revival. “What government can do is that wherever there is double taxation, it can reduce it till the prices stabilize,” he said.
