PANJIM: As the new iron ore mining season is slated to commence this month, mining firms and other stakeholders are hoping that the government will approach the Supreme Court seeking relaxation in the annual ore production cap that has currently been fixed at 20 million tonnes.
The new season is likely to be marked with some serious problems as residents of South Goa villages through which ore trucks transit have threatened not to allow ore transportation unless the proposed mining corridors are constructed. On the other hand, truck owners are demanding a hike in transportation charges, failing which they may boycott transporting ore.
Iron ore mining operations had come to seasonal halt on May 31, owing to the onset of the southwest monsoon. After a three-year ban, mining activities on a limited scale commenced in the State during the last financial year, and while 62 mining leases were granted consent to operate; only 15 to 18 mines began fresh production.
Directorate of Mines and Geology (DMG) has renewed 89 mining leases, of which 62 have been granted consent to operate by Goa State Pollution Control Board (GSPCB) with extraction capacity of 15.2 million tonnes annually.
The mining industry in the State exported 8.8 million tonnes of ore in the 2015-16 season. Of this, 3.4 million tonnes were fresh extracted ore, while the remaining 5.4 million tonnes were marked for e-auction.
“The new mining season commenced from October 1. But it depends on mining firms as to when they want to begin the actual ore production and other activities,” Mines Director Prasanna Acharya said.
The biggest worry before the industry is to sustain the momentum amidst falling global prices, subdued demand and production cap.
“We have competed in similar environments earlier and will continue to do it. We are looking for a relaxation in the production cap, so that economies of scale can be achieved, which will make us competitive,” an official spokesperson for Vedanta Limited, the largest contributor to the sector, told Herald.
Sesa Goa, the subsidiary of Vedanta Resources, has been granted an annual extraction cap of 5.5 million tonnes. The Supreme Court has imposed a cap of 20 million tonnes for the State.
The spokesperson said the government needs to work on infrastructure to help the mining industry. “The need of the hour is for work on the mining corridors to be hastened and support matters for reforms for duplicate taxation and transportation timings,” he said.
When contacted, Goa Mineral Ore Exporters’ Association (GMOEA) secretary Glen Kalavampara said the industry is trying to commence sustainably this new season. “There is a cap on volume as well as additional safeguards and regulations imposed. Price falls as well as demand for low grades are also a concern and it is essential that stakeholders understand this,” he stated.
The president of All Goa Truck Owners’ Association (AGTOA) Nilkhant Gawas said that with the cap of 20 million tonnes, mining firms have hired fewer trucks for transportation of ore and the business is not profitable.
