The Union ministry of environment and forest on Tuesday ordered revocation of suspension on environment clearances on state’s mining leases, which would allow iron ore mining to resume in Goa soon.
S Sridhar, executive director, Goa Mineral Ore Exporters Association, said, “We are yet to go through the order and its details. Revocation of suspension on the environment clearances on state’s mining leases help in resuming mining in the state soon.”
Experts, however, said that since globally, iron ore prices are on the lower side and demand is subdued, it would not be of much help to the industry. There is hardly any demand for iron ore at this point of time both globally and in the domestic market given subdued demand for steel and an over-supply situation.
Sridhar said that they have urged the government to lower export duty to nil as the iron ore available in Goa has iron content of less than 58 per cent.
The state has about eight million tonnes of ore waiting at ports that has not got a buyer due to 30 per cent duty. While globally iron ore prices have declined more than 50 per cent in the last one year, paying 30 per cent export duty will not make sense for the miners.
He said that monsoon hits Goa by the end of April and continues till September. In affect, mining would resume only by September-October. Analysts predicted that the largest iron ore miner Sesa Sterlite would benefit the most.
An analyst at Prabhudas Lilladher, said Sesa Goa will benefit the most from this order but iron ore demand and prices should revive.
Meanwhile, Goa chief minister Laxmikat Pars-ekar on Tuesday said mining industry will resume immediately now. He said suspension order of 72 out of total 89 leases, which are approved has been lifted by the central ministry.
"Around 17 mining leases which are within one km of wild life sanctuary don't have their environment clearances suspension revoked," Parsekar said.
The environment clearances were suspended in September 2012 by then union minister for environment and forest Jayanti Natarajan. Parsekar said all mine owners who are ready with the clearances can now resume the tapping of iron ore.
The chief minister said the state government would also appeal the Union government to abolish export duty on the ore with lesser ferrous content. "We are sure that the union government will abolish the export duty or lessen it on high grade ores," he said.
Currently there is 30 per cent export duty on the ores. The chief minister said the state government would continue with its social welfare schemes for mining affected people, till exports begin.
Source: Mydigitalfc.com
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