Goa port October iron ore exports down by 25pct

Sunday, 13 Nov 2011

ET reported that shipments of iron ore from India's largest port, Mormugao in Goa state, fell by a quarter in October to 2.83 million tonnes as a slump in global prices and high costs made shipments unprofitable.

Exports of iron ore from the port on India's west coast fell 15.4% to 14.71 million tonnes in the first seven months of the fiscal year.

A Mormugao Port Trust source said that "Export of iron ore is down due to internal transport problems as locals are stopping the movement of goods.”

The port is the biggest shipper of the steel making ingredient from India but the Goa state government has made it mandatory for exporters to obtain from the mines department a no objection certificate to ship iron ore.

Total shipments from India were down 24.4% in the first five months of the fiscal year starting April 1 to 28.02 million tonnes as Karnataka state exports have still not resumed despite orders from the Supreme Court in April to lift a ban.

(Sourced from ET)

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)

35 mines in Goa asked to stop production

Wednesday, 03 Aug 2011

Daijiworld Media Network reported that the Goa State Pollution Control Board will be issuing notices to 35 out of 100 odd mines all across the state asking them to suspend their operations immediately.

Mr Simon De Souza chairman of GSPCB said that the mines had failed to get the consent under air and water Pollution control act.

He said “They will have to stop their operations immediately after receiving the order.”

Mr De Souza said that “GSPCB does not have manpower to verify whether the mines have stopped the operations after issuing notices. But if they disobey notices than they will be facing contempt of High court.”

The Bombay High court at Goa had recently asked GSPCB to suspend operations of these mines which are working without getting consent under the act.

Several mines which are operating around wildlife sanctuaries and forest areas have not been given clearance by forest department, which is mandatory to get the consent under the air and water pollution act. Forest department officials have said that the NOC for these mines can be given only after deciding on the buffer zone around wildlife sanctuaries and forest areas.

The closure of these mines would be a major setback for the iron ore export trade. Goa exported 54 million tonnes of ore during last financial year.

Hike in export duty on iron ore will reduce Goan exports - Report

Thursday, 03 Mar 2011

Goa Mineral Ore Exporters' Association said that the hike in export duty on iron ore from 5% to 20% will reduce Goan exports substantially, resulting in a corresponding reduction in royalty earnings to the state.

Mr S Sridhar executive director at GMOEA said that "Goa's low grade ore has no use in the domestic market and raising its duty in line with high grade ore may make it economically unviable to export."

Warning that the ripple effect will be that employment to mining trucks and barges will be affected and importers will lose confidence in Goan exporters' reliability and may even shun them, he said the association will move the state and central governments to reconsider the hike.

Mr Sridhar explained that buyers will not pay a higher price for ore whose price is otherwise low, just because the Indian government has raised its export duty. He said that "Mining companies may reduce exports which in turn will reduce the state's royalty earnings."

Mr Glen Kalavampara of GMOEA said that Salgaocar Mining is considering reducing exports from 4 million tonnes to about 1 million tonnes. He added that "If mining companies reduce their exports by 75%, the state government's royalty will suffer."

Mr Kalavampara said that "Mining is pumping so much revenue into the state's coffers. We are being penalized for no fault of ours. The government's intentions might have been to put curbs on exports of items which are used in domestic processing. But low-grade ore has no use domestically and can only be exported. Also, the demand for it is never uniform. We might even lose importers who may feel we are unreliable suppliers."

From April 2010 to January 2011, GMOEA exported 35 million tonnes of ore. Royalty paid to the state was around INR 250 per tonne exported.

Mr Arvind Lolienkar director of mines said that up to February 2011, the state earned an unprecedented INR 763 crore in royalty on iron ore exports. It may touch INR 900 crore by March 31st 2011.

He added that "Almost 99% of Goan exports comprise of iron ore and this is restricted to countries like China, Japan and South Korea."

Meanwhile, echoing the sentiments and commenting on the overall Budget, Goa Chamber of Commerce and Industry president Mr Cesar Menezes said that "Goa has high percentage of fine ore exports where the increase in export duty is 300%. This will result in huge tax burden on Goan ore exporters. Similarly, increase in service tax on hotel rooms and hospitals having more than 25 beds will adversely affect the tourism industry. GCCI will hold consultations with the mining and tourism sectors and present Goa's case."(sourced:www.domain-b.com)