Goan mineral ore exporters caution about effect of blanket ban on mining

Apprehending a possible blanket ban on mining for at least a while, mining companies in Goa, the largest iron ore exporting state, have cautioned about the implications.

They have done so as the final report of the Shah commission, appointed by the central government to probe illegal mining in India, is yet to come. Earlier, mining was halted in Karnataka on a Supreme Court order due to rampant illegalities.

“The mining industry contributes 35 per cent of the state’s gross domestic product. Close to 75,000 people depend on mining to earn their daily bread. Any move to prohibit iron ore exports will be detrimental,” Shivanand Salgaocar, president of the Goa Mineral Ore Exporters Association (GMOEA) said at a press conference.

Mining as an industry attracts Rs 17,000 crore in foreign exchange and brings Rs 6,000 crore of direct revenue to the state and the central exchequer in a year, he said. Around 54 million tonnes of India’s 100 mt of iron ore exports occur through Goa.

Accepting that there illegalities within the system of mining and exports, P K Mukherjee, a member of GMOEA and managing director of India’s largest private sector iron ore producer, Sesa Goa Ltd, said there was an urgent need to strengthen the monitoring system in the state. However, he added, a “blanket ban will lead to destabilisation of the Goan economy.

These social and economic dimensions need to be addressed before arriving at a decision”. He was responding to recent media reports suggesting the Shah commission could recommend a ban on exports. The Goan government has already imposed a ban on movement of dumps, the low-grade ore, within the state. Mukherjee said India’s exports could come down by a fourth if the situation did not improve.