Friday, 06 Jan 2012
Times of India reported that miner as well as the Goa Chamber of Commerce and Industry have taken strong objection to the iron ore export duty hike to 30% from 20% effective from December 30.
As per report, both Goa Mineral Ore Exporter's Association Goa Chamber of Commerce and Industry have written to the finance ministry Mr Pranab Mukherjee to roll back the hike for low grade ore from Goa.
Mr Manguirish Pai Raikar president wrote that "Though the ministry has not given any rationale behind the hike, we believe it is prompted by the major domestic steel producers and is intended to make export of iron ore less competitive so that ore can be made available for encouraging domestic production of steel. A hike on ore with Fe content over 58% may be justified as such ore is used by the domestic steel and sponge iron industries.”
Mr Raikar in the letter, forwarded as a press note, elaborated that domestic steel manufacturers use iron ore lumps, while Goa produces low grade ore consisting mostly of fines. The latter ore, including fines, cannot be pelletised and hence are not suitable for steel making.
Mr Raikar added that "At the moment, only China has the technology to enable use of these materials which are unwanted in India; and until such time as the technology comes to India, this export should really be incentivized and not taxed.”
He held that if Goan ore is not exported and thus converted to foreign exchange after undergoing the process of generating employment and tax revenues, and is not consumed in India, it ceases to become a strategic natural resource and loses all economic relevance. Mr Raikar stated that "The low grade ore generated in the course of mining will then have to be treated as waste, raising environmental concerns in a tourist paradise.”
He further held that the low grade ore which competes for the Chinese market against ores from Australia, Madagscar, etc and is sold in the spot market may see clients opt for other players as Goa's pricing may be higher. This is especially since this is the second major export duty hike in this fiscal. Mr Raikar further stated that "This will make it difficult for us to negotiate long term sale arrangements so that mining investments, which are all long term in nature, cannot be planned properly.”
Mr Raikar concluded by pointing out that in the absence of any alternative use for low grade Goan ore, ore from Goa and Redi (southern Maharashtra) were treated separately in the export policy during earlier years and Goa should continue to be treated so.
Mr Glean Kalavampara secretary of GMOEA pointed out that no low grade ore is used by the domestic steel industry and even existing pig iron plants in Goa draw iron ore from Karnataka and elsewhere. He told TOI that "Logistically speaking, it is not practical or cost effective to transport ore from Goa to Orissa and other states where steel plants exist as there already exists surplus ore in those states.”
GMOEA too fears that Goa will lose out to Australia and Brazil who could easily increase their ore outputs and wipe Goa out.
(Sourced from TOI)
Showing posts with label Goa iron ore miners. Show all posts
Showing posts with label Goa iron ore miners. Show all posts
Friday, January 6, 2012
Thursday, January 5, 2012
Mining ban may hit Sesa Goa profit margins
Thursday, 05 Jan 2012
It is reported that the Finance Ministry decision to hike the export duty on iron ore from 20% to 30% within the space of a year spells bad news for iron ore miner Sesa Goa whose profit margins could take a further knock.
Sesa Goa exports medium-grade iron ore from its Goa mines to China. The company hawks low grade ore compared with international players and as such does not command pricing power. Its ability to pass through the higher levy therefore remains doubtful. The 30% export duty would translate to further margin pressures for the company.
The iron ore producer paid INR 660 crore in export duties on INR 8,586 crore of iron ore exports in FY11. During this period, export duties on iron ore fines averaged five per cent. Paying out 30% export duty could cripple Sesa Goa domestic operations which are struggling to raise output. Over the past year, the company has faced setbacks in the form of a ban on exports from its Karnataka mines and closure of Odisha mines.
Both the closures have hit volumes which slipped by nearly 14% to 5.8 million tonnes during the first half of FY12. The new mining Bill may require Sesa Goa to pay a charge equivalent to royalty which currently stands at 10% of the final price.
(sourced TheHinduBusinessline.com)
It is reported that the Finance Ministry decision to hike the export duty on iron ore from 20% to 30% within the space of a year spells bad news for iron ore miner Sesa Goa whose profit margins could take a further knock.
Sesa Goa exports medium-grade iron ore from its Goa mines to China. The company hawks low grade ore compared with international players and as such does not command pricing power. Its ability to pass through the higher levy therefore remains doubtful. The 30% export duty would translate to further margin pressures for the company.
The iron ore producer paid INR 660 crore in export duties on INR 8,586 crore of iron ore exports in FY11. During this period, export duties on iron ore fines averaged five per cent. Paying out 30% export duty could cripple Sesa Goa domestic operations which are struggling to raise output. Over the past year, the company has faced setbacks in the form of a ban on exports from its Karnataka mines and closure of Odisha mines.
Both the closures have hit volumes which slipped by nearly 14% to 5.8 million tonnes during the first half of FY12. The new mining Bill may require Sesa Goa to pay a charge equivalent to royalty which currently stands at 10% of the final price.
(sourced TheHinduBusinessline.com)
Friday, November 4, 2011
BJP seeks CBI probe into Goa exports
Friday, 04 Nov 2011
BL reported that Bharatiya Janata Party president Mr Nitin Gadkari on Thursday led a delegation of the party's Goa unit leaders to President Ms Pratibha Patil and sought a Central Bureau of Investigation probe into the alleged illegal mining of iron ore in Goa, which accounts for 60% of the country's iron ore exports
Mr. Gadkari said the scam causing a loss of INR 25,000 crore to the exchequer took place over the last five years.
The delegation asked the President to direct the Centre to take stringent action against the wrongdoers so as to rid the State of the mining mafia and safeguard the interests of thousands earning their income on legal mining activities.
They charged “The Congress regime and the Pradesh Congress Committee are involved in the scam.”
The BJP charged that the ruling Congress government was trying to cover up the scam.
(Sourced from BL)
BL reported that Bharatiya Janata Party president Mr Nitin Gadkari on Thursday led a delegation of the party's Goa unit leaders to President Ms Pratibha Patil and sought a Central Bureau of Investigation probe into the alleged illegal mining of iron ore in Goa, which accounts for 60% of the country's iron ore exports
Mr. Gadkari said the scam causing a loss of INR 25,000 crore to the exchequer took place over the last five years.
The delegation asked the President to direct the Centre to take stringent action against the wrongdoers so as to rid the State of the mining mafia and safeguard the interests of thousands earning their income on legal mining activities.
They charged “The Congress regime and the Pradesh Congress Committee are involved in the scam.”
The BJP charged that the ruling Congress government was trying to cover up the scam.
(Sourced from BL)
Sunday, October 16, 2011
Sesa Goa denies excess iron ore production in Goa
Sunday, 16 Oct 2011
DHNS reported that Sesa Goa, one of the many leading iron ore exporters being investigated by the Shah Commission for irregular mining in Goa, denied it had violated regulations or made underhand political donations.
The Vedanta-owned company, which is India’s largest producer and exporter of iron ore in the private sector, said recent media reports against the company for excess production were false, motivated and baseless. The leading iron ore producer said it had permission to extract 4 million tonnes of iron ore from three sites at Codli, Dharbandora for the year 2006-07.
From the year 2007-08 permission was enhanced to 7 million tonnes for the same pits, the company said. “
It said “Production each year from the same sites has been within the permitted quantities.”
It added that like many other corporate houses in India, Sesa has indeed made donations to political parties but strictly in accordance with due process prescribed under law.
It denied impropriety or lack of transparency in the in its political donations and said it was unfortunate that certain activists and sections of media are ascribing motives to such political donations.
(Sourced from DHNS)
DHNS reported that Sesa Goa, one of the many leading iron ore exporters being investigated by the Shah Commission for irregular mining in Goa, denied it had violated regulations or made underhand political donations.
The Vedanta-owned company, which is India’s largest producer and exporter of iron ore in the private sector, said recent media reports against the company for excess production were false, motivated and baseless. The leading iron ore producer said it had permission to extract 4 million tonnes of iron ore from three sites at Codli, Dharbandora for the year 2006-07.
From the year 2007-08 permission was enhanced to 7 million tonnes for the same pits, the company said. “
It said “Production each year from the same sites has been within the permitted quantities.”
It added that like many other corporate houses in India, Sesa has indeed made donations to political parties but strictly in accordance with due process prescribed under law.
It denied impropriety or lack of transparency in the in its political donations and said it was unfortunate that certain activists and sections of media are ascribing motives to such political donations.
(Sourced from DHNS)
Thursday, October 6, 2011
Demand for low grade ore from China has helped Goa mines
Thursday, 06 Oct 2011
PTI reported that iron ore exporters from Goa today claimed that the demand for low grade of ore in China has helped to prolong the life of mining industry in the state.
Mr Shivanand Salgaoncar President, Goa Mineral Ore Exporters Association said "The ore which was stacked as rejection at the mining site was exported during last few years after China boom.”
He said that "The high grade ore in the earth is left untapped. This will increase the lifespan of the industry. Thanks to China boom, traditional mine owners prospered. Lot of dumps that were lying idle were exported to the neighboring country."
Responding to a question on possible life span of ore mines in the state, Mr Salgaoncar said it was not possible to say for sure as to when would ore reserves in Goa exhaust. He said that "Each mining firm will be able to tell you what the lifespan of their lease is. I have been hearing since 30 years that the lifespan is not more than 30 years. But ore still exists."
Mr Salgaoncar whose association has 34 major exporters as its members, said that there cannot be any particular cap prescribed for extraction of ore. He added that "It is for individual lease holder to decide how much he can extract and for how much permission he has received."
(Sourced from PTI)
PTI reported that iron ore exporters from Goa today claimed that the demand for low grade of ore in China has helped to prolong the life of mining industry in the state.
Mr Shivanand Salgaoncar President, Goa Mineral Ore Exporters Association said "The ore which was stacked as rejection at the mining site was exported during last few years after China boom.”
He said that "The high grade ore in the earth is left untapped. This will increase the lifespan of the industry. Thanks to China boom, traditional mine owners prospered. Lot of dumps that were lying idle were exported to the neighboring country."
Responding to a question on possible life span of ore mines in the state, Mr Salgaoncar said it was not possible to say for sure as to when would ore reserves in Goa exhaust. He said that "Each mining firm will be able to tell you what the lifespan of their lease is. I have been hearing since 30 years that the lifespan is not more than 30 years. But ore still exists."
Mr Salgaoncar whose association has 34 major exporters as its members, said that there cannot be any particular cap prescribed for extraction of ore. He added that "It is for individual lease holder to decide how much he can extract and for how much permission he has received."
(Sourced from PTI)
623 PLs for mining leases pending in Goa
Thursday, 06 Oct 2011
PTI reported that State Mines and Geology department has conceded that there are 623 prospecting licences for mining leases pending with them while environmentalists are asserting for cap in the Iron Ore mining in Goa.
A cabinet note moved has mentioned that state has 595 deemed leases, of which 410 applications for renewal are being processed. The department has told the state cabinet that there are 623 prospecting licenses.
The Shah Commission appointed by the Central government and state legislative assembly's Public Accounts Committee is investigating into multi crore mining scam, which has been estimated somewhere around INR 1,200 crore to INR 10,000 crore.
The ministry of Environment and Forest has fixed a moratorium on new mining leases and renewal of old leases since last year onwards asking the state government to frame its mining policy. While environmentalists and state main opposition party, Bharatiya Janata Party are pressing for a cap on the iron ore to be tapped from Goa, the mining industry has said that 'any capping would be deterrent for their trade.'
Goa basically has low grade Iron Ore which has received huge demand in the international markets after China boom of 2005 when the neighboring country began building infrastructure for Beijing Olympics. The state which has mining as the biggest industry after the tourism trade, had received INR 1,000 crore in the form of royalty earned on exports. As per the figures furnished on Monday till date between March to September 2011 the state has earned INR 450 crore as a royalty.
Of the twelve talukas, seven talukas has active mines. As per the figures provided by the state government to Shah Commission and there are 90 mining leases and total 54 million tonnes of Ore has been exported from Goa.
(sourced from HindustanTimes)
PTI reported that State Mines and Geology department has conceded that there are 623 prospecting licences for mining leases pending with them while environmentalists are asserting for cap in the Iron Ore mining in Goa.
A cabinet note moved has mentioned that state has 595 deemed leases, of which 410 applications for renewal are being processed. The department has told the state cabinet that there are 623 prospecting licenses.
The Shah Commission appointed by the Central government and state legislative assembly's Public Accounts Committee is investigating into multi crore mining scam, which has been estimated somewhere around INR 1,200 crore to INR 10,000 crore.
The ministry of Environment and Forest has fixed a moratorium on new mining leases and renewal of old leases since last year onwards asking the state government to frame its mining policy. While environmentalists and state main opposition party, Bharatiya Janata Party are pressing for a cap on the iron ore to be tapped from Goa, the mining industry has said that 'any capping would be deterrent for their trade.'
Goa basically has low grade Iron Ore which has received huge demand in the international markets after China boom of 2005 when the neighboring country began building infrastructure for Beijing Olympics. The state which has mining as the biggest industry after the tourism trade, had received INR 1,000 crore in the form of royalty earned on exports. As per the figures furnished on Monday till date between March to September 2011 the state has earned INR 450 crore as a royalty.
Of the twelve talukas, seven talukas has active mines. As per the figures provided by the state government to Shah Commission and there are 90 mining leases and total 54 million tonnes of Ore has been exported from Goa.
(sourced from HindustanTimes)
Sunday, August 28, 2011
HC issues notices to 48 iron ore mines in Goa
Sunday, 28 Aug 2011
PTI reported that the Goa bench of Bombay High Court has issued notices to holders of 48 mining leases in the state for exceeding the permissible limit of extraction.
Goa Foundation, an environmental NGO, has filed a Public Interest Litigation before the High Court on the issue, calling such extraction as a violation of state environmental laws.
The respondents to the PIL include some of the state’s biggest mining companies, including VS Dempo, Timblo Irmaos, VM Salgaoncar and Chowgule & Co. Besides, Court has also issued notices to Union Ministry of Environment and Forests.
Next hearing would be on September 19.
The state has 100 odd mining leases, which export 54 million tones of ore annually.
(Sourced from PTI)
PTI reported that the Goa bench of Bombay High Court has issued notices to holders of 48 mining leases in the state for exceeding the permissible limit of extraction.
Goa Foundation, an environmental NGO, has filed a Public Interest Litigation before the High Court on the issue, calling such extraction as a violation of state environmental laws.
The respondents to the PIL include some of the state’s biggest mining companies, including VS Dempo, Timblo Irmaos, VM Salgaoncar and Chowgule & Co. Besides, Court has also issued notices to Union Ministry of Environment and Forests.
Next hearing would be on September 19.
The state has 100 odd mining leases, which export 54 million tones of ore annually.
(Sourced from PTI)
Thursday, March 3, 2011
Goa mines dept unable to explain iron ore royalty losses to PAC
Thursday, 03 Mar 2011 By PTI
Goa mines department has failed to explain the royalty loss on almost one crore tonne of iron ore exported between 2003-05. The Goa Legislative Assembly’s Public Accounts Committee had questioned the mines department to reason the losses but the department floundered.
Mr Manohar Parrikar chairman of PAC in the absence of proper mechanism, the mines department had let the revenue losses in the form of royalty. He said that “The mines department has shown its inability to explain the revenue losses adding that the Comptroller Auditor General in its report had mentioned about these losses.”
The leader of the Opposition said that the legal mines in the state are not regulated which leads to these issues.
Mr Parrikar added that “Goa government has powers to formulate rules and regulations to control extraction and storage of minerals. If powers are executed then legal mining can be regulated.”
PAC has asked the State Transport Director, Mr Arun Desai to check unlicensed drivers of mining trucks. He claimed that “As per rough estimates, at least 25 per cent of these drivers don’t have licences.”
The Committee has directed the Director General of Police, Mr BS Bassi, to form a squad headed by the Deputy Superintendent of Police to curb the illegalities like overloading by these trucks. Both the departments have been asked to submit the action taken report to PAC as soon as possible.
Mr Parrikar said mining trucks have become a major bone of contention in rural Goa where people are on road, almost every day, complaining about dust pollution and accidents.
Mr Manohar Parrikar chairman of PAC in the absence of proper mechanism, the mines department had let the revenue losses in the form of royalty. He said that “The mines department has shown its inability to explain the revenue losses adding that the Comptroller Auditor General in its report had mentioned about these losses.”
The leader of the Opposition said that the legal mines in the state are not regulated which leads to these issues.
Mr Parrikar added that “Goa government has powers to formulate rules and regulations to control extraction and storage of minerals. If powers are executed then legal mining can be regulated.”
PAC has asked the State Transport Director, Mr Arun Desai to check unlicensed drivers of mining trucks. He claimed that “As per rough estimates, at least 25 per cent of these drivers don’t have licences.”
The Committee has directed the Director General of Police, Mr BS Bassi, to form a squad headed by the Deputy Superintendent of Police to curb the illegalities like overloading by these trucks. Both the departments have been asked to submit the action taken report to PAC as soon as possible.
Mr Parrikar said mining trucks have become a major bone of contention in rural Goa where people are on road, almost every day, complaining about dust pollution and accidents.
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