Goa`s iron ore exports drop

Iron ore exports from Goa, the country's largest lump iron ore exporting state, has declined marginally on account of closure of mines, export duty and the slackening Chinese demand. The state accounts for about 44 per cent of the country's total iron ore exports.

According to the data collated by the Goa Mineral Ore Exporters' Association (GMOEA), total iron ore exports from Goa shrunk by 2 per cent to 39.3 million tonnes in 2007-08 compared with 40.5 million tonnes in the year-ago period. The country exported 95 million tonnes of the ore in 2007-08.

Last year, mining activities were delayed by about 45 days following the monsoon that stretched abnormally. A low turnout of labourers after the monsoon was another reason for the delay in mining operations taking off.

The delay led to Chinese spot buyers procuring the key raw material for steel from South Africa and Brazil, which continued throughout the year. Indian exporters thus lost a part of the iron ore market share and could not cash in on the clogged ports of Brazil, another major ore exporter.

The government's ad valorem duty of Rs 300 a tonne on iron ore exports with high iron content and Rs 50 a tonne on lumps (with iron content lower than 62 per cent) was another factor that dampened ore exports from the state. Importers found shipments from Brazil and the African countries cheaper compared to those from India, said Glenn Kalavampara, secretary, GMOEA.

Meanwhile, the Supreme Court has granted permission to Rajesh Timblo, one of the two miners that was prevented by the apex court from mining in the state on a complaint from the Goa Foundation, a non-government organisation. A V Vilingkar, another miner, has been asked to provide additional information to arrive at any final conclusion.

In January, 16 of 18 miners were allowed to start activities on condition that they would carry out operations in an eco-friendly manner, the protect forest wealth and introduce labour welfare measures.

Claude Alvares of the Goa Foundation has demanded setting up of a supervisory body to keep a watch on mining companies in Goa. "Although, the environment ministry has failed to give much attention on our proposal, probably because of the lack of manpower, we would continue to monitor them," said Alvares."If we find any company violating the forest law or the Supreme Court order, we would move the court once again," said Alvares.