Tuesday 28 May 2024

News Analysed, Opinions Expressed

Economy | Mining

Ore exports may dip by 10%


Ban on transportation of iron ore from the neighbouring Karnataka and the truckers' strike in Goa is worrying the mining industry in the state as these factors might downscale the exports of iron ore for the ensuing season.

Goa Mineral Ore Exporters Association (GMOEA) predicts the downfall to at least 10 per cent considering the trend of exports till December 2010.

The state has exported 28 million tonnes of ore till December, which is much less compared to the seasonal expected total of 53 MT.

Of the total 53 MT ore, 45 was from the 100 local mining leases while rest was transported from neighbouring Karnataka.

"Since last two months, there is a ban on transportation of ore from Karnataka. Also, local factors like strike by truckers play a role in adding to the woes," GMOEA Secretary Glen Kalavampara told PTI.

The truckers transporting the ore have suddenly struck the work demanding higher rates for the transportation. The issue currently is languishing with the state government-constituted committee.

Kalavampara said the strike is likely to dent the exports if it continues for more days.

Goa also faced prolonged monsoons which delayed the season. The exporters feel that with the current pace, the business is not looking too great.

"We are optimistic that the situation will improve," Kalavampara said.

Although the season does not look bright for the exporters, the revised royalty on the ore has brought cheers for the state treasury.

"We have collected Rs 536 crore as a royalty on the ore exports till December. We expect to beat the target of Rs 600 crore as projected in the state budget," Arvind Lolienkar, Director Mines and Geology department , said.

He said that the state has been reaping the benefits after central government ordered that royalty on exports of ore should be charged ad valorem from August, 2009.

The mining firms, however, has said that such a huge royalty is unfair.

Kalavampara said that there are some states where the royalty is abnormally low. The mine owners feel that the royalty should be charged as per grade of the ore.

"The ore with low grade hardly fetch any price after exports. The royalty on that should be much compared to higher grade," Kalavampara said.

Goa government is non-committal on decreasing the royalty amount as the issue comes in purview of central ministry.

State Chief Minister Digambar Kamat , however, who is also holding mining portfolio, is busy ensuring that the leakage in export-related revenues are plugged.

Goa has made it compulsory for all the ships to get No Objection Certificate (NOC) from the State Mines Department before consignment leaves the shore.

While Panaji Port has already started implementing this, state's major port Mormugao Port Trust (MPT) is likely to implement this from next month onwards.


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Total Comments :4

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APPROX Rs 2000/ I.E 2000/1000= RS 2 PER KG.


APPROX Rs 45000/ton i.e. Rs 45000/1000= Rs45 per kg

Now comapre RAW to FINISHED

Rs2 to Rs45 .....(APPROX)

its 1000times more margin

plus manny advantages.. lyk employment to youth......

we have to think what are the exporters are doing. club all exportes together & set up a huge plate which will generate huge outcome to STATE....

chetan , DUABAI

Mining areas be they for iron ore, coal are covered by forest land. On this there is on-going discussion, deliberation to strike a balance between necessity for mining and preservation of forest land. Mining is necessary for ensuring economic growth and therefore mining policy has to come from the Centre as well as the States.

Ludovico , Old Goa

What is bad for the mining exports is good for the local masses and the State!

The legislations on minerals are all made to benefit the Central Govt. and the few privileged entrepreneurs who are in the mining business of destroying the parent State and causing miseries to its masses!

The royalty of Rs536 crores is a pittance compared to the massive earnings the concerned make in the business which could go up to-Rs 25 thousand crores?

The royalty needs to be increased by at least 15 to 20 times to compensate for the enormous damage that the mining industry is doing to the parent State and its people! Who has given us the right to exploit the resources belonging to future generations?

vishwas prabhudesai , loliem

Mining and its problems for Goa emanate from various factors. In the next budget session of the Assembly the Opposion Leader Mr. M. Parrikar, may have some cards up his sleeve which may well be able to embarrass the government.

Illegal mining for one has to be curbed.

The point at which ad valorem to be charged may be in focus.

The revenue collected is a central subject.

The revenue percentage put back into state is to be re-worked.

The low grade iron ore is worthless unless blended with that across the borders.

The Karnataka Govt. holds the key on this sector.

If the mining producers of ore benefit they have to work hand in glove with the transporters, such as, truckers and barge owners, transshipers.

Mining mission and policy is the need of the hour, where neo-mining firms have to be edged out.

There should be openness in any policy formulated.

The pay back into the damage caused by the vacuum (tremors) in the crust and mining effluents into water bodies needs funds for correction, and undoing the damage by replanting, etc.

Seismographic change, wariness, to be monitored, all these and many more, we have the responsibility to shoulder.

Ludovico , Old-Goa



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