China Coal-Prices stay at 4-mth low; seen weak til May

Mar03, 2011

* Market well-supplied
* Chinese coal discount vs Australian imports highest since '08
By Fayen Wong

SHANGHAI - China's thermal coal prices were stuck at a four-month low of 770 yuan ($117.2) a tonne as supplies continued to outstrip demand, with stockpiles at Qinhuangdao port rising to the highest in more than seven months.

Some Chinese traders remained bearish on the market and voiced concerns that demand would only pick up in late April or May ahead of summer restocking by utilities.

Coal with a heating value of 5,500 kcal/kg was flat at 770-780 ($117.19-$118.72) on Wednesday, while stocks at top coal port Qinhuangdao jumped 12.5 percent to 8.47 million tonnes, data from industry website sxcoal.com showed.

Coal with heating value of 6,000 kcal/kg (NAR) was steady at 825-835 yuan.

"Prices won't start moving higher until around May. The outlook for imports will probably only improve ahead of summer, but even that is highly dependent on international prices," said a source at a big trading house.

"We have to remember that China doesn't need to import. They have more than enough coal domestically to feed the entire nation. They only do it when imports are cheaper."

But coal prices in Australia and South Africa have continued to rise in recent weeks, making Chinese coal cheaper by $38 and $9.30 a tonne respectively, based on coal with heating value of 6,000 kcal/kg NAR, Reuters calculations showed.

The arbitrage between Chinese coal prices and Australian imports are at the widest since September 2008.

"The floodgates of Chinese demand closed as suddenly as they had opened in 2009. You get the occasional enquiry but they are just fishing; none of them are serious buyers," said a Singapore-based trader.

Another trader said Chinese buyers were offering some $5-$10 below market rates for Indonesian sub-bituminous coal, which is now hovering at around $87 a tonne, based on coal with a net heating value of 4,900 kcal/kg.

Lured by higher overseas prices, Chinese producers are still trying to sell spot shipments to Japan, but there is a general lack of buying interest in Japan and the Pacific market as whole.

Australia's thermal coal prices, a benchmark for Asia, slipped to $132 a tonne versus last week in a thinly traded market which is largely awaiting the results of annual contract negotiations between Australian producers and Japanese utilities.
[COAL/ASIA]
Weekly Qinhuangdao prices for (Yuan) PORT STOCKS >6,000 kcal/kg >5,500 Kcal/KG (Mln Tonnes) WEEK TO

825-835 770-780 8.472 Mar 02

825-835 770-780 7.533 Feb 21

825-835 775-785 7.284 Feb 14

825-835 775-785 7.426 Feb 07

825-835 775-785 6.859 Jan 31

825-835 775-785 7.071 Jan 24

835-845 780-790 7.210 Jan 17

835-845 780-790 6.954 Jan 10

835-845 780-790 7.049 Jan 04

835-845 780-790 7.104 Dec 30

835-845 780-790 7.590 Dec 24

840-850 790-800 7.006 Dec 20

845-855 795-805 6.711 Dec 13

845-855 795-805 6.663 Dec 06

860-870 805-815 5.789 Nov 29

850-860 795-805 6.170 Nov 22

840-850 790-800 6.197 Nov 15

840-850 790-800 6.387 Nov 08

825-835 765-775 6.805 Nov 01

(Reporting by Fayen Wong, Editing by Jonathan Hopfner, By Thomson Reuters)

Agreement reached with Japanese on clean coal

Thursday,03 Mar 2011

The Government of Saskatchewan and the Japan Coal Energy Center have a new memorandum of understanding to encourage more co-operation between the province and Japan on technologies respecting clean coal and carbon capture and storage.

Energy and resources minister Bill Boyd and JCOAL chairman Yoshihiko Nakagaki signed the MOU in Tokyo on January 25 during Boyd's resources investment mission to Asia.

The agreement sets the stage for future information exchanges and research projects involving scientists and companies in both jurisdictions, and it could lead to Japanese investment in Saskatchewan carbon capture and storage projects.

Mr Boyd said that "JCOAL has a great track record in clean coal technology research and Saskatchewan is a world leader in carbon capture and storage technology. It's taken a lot of work on both sides to make this MOU happen, and the relationships we establish through it will help both Saskatchewan and Japan as our industries and utilities work to reduce their environmental footprints."

Saskatchewan is Canada's third largest coal producer, with reserves that will last hundreds of years at current production levels.


Mr Boyd said that "The technical co-operation coming out of this MOU may well help us unlock some of our province's deeper coal resources, which require new and innovative technologies to be developed.” (sourced:LeaderPost)

Tags: Japanese investment in Saskatchewan carbon capture projects,

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.

Call for declaring coal an essential commodity in India

Thursday, 03 Mar 2011 By TOI

A parliamentary committee has asked the government to include coal in the Essential Commodities Act to control its pilferage while asking the ministry of coal to prepare a comprehensive document having details of human lives lost, environmental degradation and resultant loss to the exchequer due to illegal mining.

Coal was removed from the ECA earlier through an amendment. Now, the committee wants Centre to control its production, supply and distribution to stop illegal mining and pilferage.

A study carried out by the Jharkhand government with the help of Indian School of Mines, Dhanbad, estimated loss to coal companies to the tune of INR 106 crore annually and to the exchequer of about INR 34 crore a year.

In a report given to Parliament, the parliamentary standing committee on coal and steel has said a joint inter-state intelligence and action force should be constituted to combat the problem of illegal mining. A task force in each state under the supervision of the deputy commissioner and superintendent of police of the concerned area has also been mooted.

Tianjin imported iron ore market remains weak

Thursday, 03 Mar 2011

It is reported that imported iron ore market in Tianjin remains weak with thin enquiries and slim transactions. With the sharp plunge in imported iron ore futures market and steel market, most traders are not so upbeat on market outlook in the coming days.

Strong wait-and-see attitudes dominate the market. Currently, 63.5% Indian fines at Tianjin port is settled at CNY 1370 per tonne to CNY 1380 per tonne, PB fines is quoted at CNY 1300 per tonne to CNY 1310 per tonne, 58% Indian fines goes at CNY 1050 per tonne to CNY 1070 per tonne.

Most steel mills’ buying interests are weak and they adopt wait-and-see attitudes. A handful of small and medium steel mills expressed that they might purchase next week, as they only hold few stocks. India announced on Monday a uniform 20% increase on export duties for iron fines and lumps. Impacted by the tax hike, offers from miners reduce with some suspending offers. Most steel mills prefer to purchase spot cargoes currently.(sourced:mysteel)

Chinese coal import price jumps 60pct in 2010

Thursday, 03 Mar 2011

According to statistics of China National Development and Reform Commission, China imported a total of 164.78 million tonnes of coal in 2010 up by 30.9%YoY. Imports spent USD 16.9 billion increase of 60.1%YoY underscoring that while imports increased in 2010, international coal price surged with it.

Moreover, this year international coal demand of China was expected to continue to grow and it’s going to be even more responsive to international coal prices.

The bulletin showed China’s crude oil consumption jumped 12.9%, natural gas 18.2%, electric power 13.1% and coal consumption 5.3%. The growth in coal demand had outrun that in coal production in 2010, which rose by a YoY 300 million tonnes. Imports reached a record high of over 160 million tonnes. (courtsey news by mysteel)

Tags : statistics of China National Development and Reform Commission, China total coal import 164.78 million tonnes,

Limited availability of coal could trip mega power plans in India

Thursday, 03 Mar 2011 By ET

An acute shortage of domestic coal is threatening to destabilize new power generation projects in which developers have already invested an estimated INR 75,000 crore.

A senior official with the power ministry told ET that "New capacity of about 15,000 MW is likely to be stranded for want of coal. This capacity is enough to light up three states bigger than Delhi.”

Coal India Limited had promised to supply 92 million tonnes of fuel to these projects, most of which were expected to be operational over the next one year. But the state run firm now says it can deliver only 13 million tonnes. The available coal, which needs to be blended with imported coal before it is ready for use by generating companies, could produce barely 3,000 MW of power.

The official added that "Coal India has indicated that availability for power utilities is likely to be 319 million tonnes only. Of this, fuel supply agreements have already been signed for 306 million tonnes generating units commissioned up to March 31st 2009.”

The official added that "There is coal available at pit head locations, which is not being mined out due to inefficiency of Coal India and its subsidiaries.”

Power project developers on Tuesday called on the Central Electricity Authority to raise their concerns over the fuel supply issue but the authority said it could not do much.

A CEA official said that "We are helpless as Coal India has indicated that there is no coal for new projects.”

The coal ministry official said CIL production would not improve unless the environment ministry clears the hurdles for mining projects. He said more than 150 mining projects of Coal India are awaiting clearance from the environment ministry. These projects have a coal production potential of 210 million tonnes.

Experts say importing coal will also not solve the problem for new projects as there is a limit to which Indian boilers can use imported coal.

Imported coal has higher heat value as compared with domestic coal and it is believed that it also corrodes boiler parts and emits more smoke when used in Indian boilers over longer period.

Indian iron ore mining mess - Goa shuts illegal mine after tribal protest

Thursday, 03 Mar 2011 By ET

The Goa government has finally shut down an illegal open cast iron ore mine after tribal protest, who had been protesting for months, laid siege to the office of the director of mines for 10 hours.

The opposition has congratulated the agitating tribals for setting a new trend in taking the battle against Goa's uncontrolled and illegal mining to its logical conclusion.

About 200 tribals surrounded Director of Mines Mr Arvind Lolienkar for more than 10 hours in his Panaji office Tuesday, asking him to order closure of the illegal mine operated by Devpan Devadongor Iron and Manganese Private Limited at Cavrem, about 75 km from Panaji.

The deadlock between the tribals and the state government over the illegal operation of the mine broke late Tuesday night after the state pollution control board sealed the mining company's operational premises.

One of the protestors, Mr Ramesh Velip told IANS that "For months we have been shouting and protesting that ore was being illegally extracted. Even Chief Minister Digambar Kamat , who is also the mines minister, did not stop the illegal mining.”

Another protestor added that "They have not only been mining illegally, but have also posted hoodlums and bouncers at the mining sites to threaten us.”

Protestors from Cavrem, including elderly men and women, almost all of whom are tribals and depend on the forest land and agricultural produce for their survival, Tuesday surrounded mines director Lolienkar, asking him to order the illegal mine shut at Devdongor, which means God's hill.

Illegal and unchecked mining is a sensitive issue in Goa, with both social groups and the opposition repeatedly voicing their concern over the issue.

According to data submitted in the Goa assembly, ore worth INR 4,000 crore was illegally mined and exported out of the Goa to countries like China, Japan and Romania.

Tamil Nadu Newsprint seeks 160000 tonnes of steam coal

Thursday, 03 Mar 2011

Tamil Nadu Newsprint and Papers Ltd is seeking to import 160,000 tonnes of non coking coal delivered in four shipments through a tender.

According to a document published on the company website, the Chennai based state manufacturer is bidding for power station coal of 6,000 kilocalories per kilogram, according to the tender issued yesterday. Suppliers must submit offers by March 23.

The company typically imports about 550,000 tons of coal a year, mainly from Indonesia, for its paper factory in Karur district, India Coal Market Watch said in a note yesterday, citing a company official. It bought 150,000 tonnes of the fuel from Indonesia in November at a delivered price of USD 82 a tonne.

The reference price set by Indonesia for coal grade of 6,200 kilocalories heating value was at a record USD 127.05 a ton in February.

Tags :Indonesia coal benchmark price, Indonesian HBA coal price for February 2011 was US$ 127.05, India Coal Market Watch

Indonesia may allow exports of lower quality steam coal

Thursday, 03 Mar 2011

Indonesia the world’s largest exporter of power plant coal, may revise a government plan and allow lower quality coal to be exported after objections from miners.

Mr Bambang Setiawan director general of coal and minerals at the Energy and Mineral Resources Ministry said that “We don’t want this rule to hamper investments although it’s aimed at increasing exports of higher-value coal. Investors are worried that they won’t be able to sell most of their output if the grade limit is too high.”

Indonesia had planned to ban exports of the fuel with an energy value of less than 5,600 kilocalories a kilogram starting in 2014, requiring producers to upgrade the calorie if they want to ship it overseas, Witoro Soelarno, then secretary to the director general of coal and minerals at the energy ministry, said in January.

Mr Setiawan said that “It’s not an easy and cheap process to upgrade the calories. We need to adjust the limit to give the producers the ability to sell their output without having to invest too much on technology upgrades.”

He said that the government’s main objective in setting the new rule is to increase revenue from coal exports and ensure sufficient supplies of the fuel for state utility PT Perusahaan Listrik Negara.

ENRC to Spend USD 7 billion on Kazakh and Brazilian iron ore growth

Thursday, 03 Mar 2011 |bloomberg|

Eurasian Natural Resources Corp a ferroalloy producer plans to invest USD 6.8 billion to increase iron-ore output in Kazakhstan and Brazil as prices for the steelmaking ingredient climb.

ENRC, based in London, aims to become a leading global iron ore miner with annual output of 70 million tonnes by 2016, Mr Felix Vulis CEO of ENRC at a BMO Capital Markets conference in Hollywood, Florida said that the company currently mines iron ore only in Kazakhstan, where its annual production is 17 million saleable tonnes.

Mining companies are boosting investment in reserves of iron ore and coal, both used to make steel, as Asian demand drives up prices. The price of iron ore imports to China, the world’s largest consumer of the raw material, jumped 70% last year, while European benchmark coal rose 38% in London, according to data compiled by Bloomberg.

ENRC’s investment program includes USD 2.1 billion to expand iron ore operations in Kazakhstan, where the company plans to increase output to 23 million tonnes by 2015.

Tags :investment in iron ore and coal reserves, raw material, steel mills

South Africa exports above 1 million tonne coal to India

Thursday, 03 Mar 2011

Reuters reported that India bought 1.5 million tonnes of thermal coal from South Africa in January 34% of its total exports of 4.4 million tonnes but down from 2 million tonnes in December.

Exporters said that China accounted for 452,000 tonnes of South African coal in January, little changed from 485,000 tonnes shipped in December.

One exporter said that "The tonnages moving to India have remained substantial, but Indian buyers are less visible in the market because they're buying more term contract coal and less spot.”

India has over the past two years become the biggest single importer of South African coal and is expected to increase its share over the next several years as power generation grows.

The strength of Indian and to a lesser extent Chinese imports of South African coal has been the main factor supporting coal prices at over USD 100 a tonne during the past several months.

(sourced:Thomson Reuters)

TATA Steel has no intention to exit from Riversdale

Thursday, 03 Mar 2011

Tata Steel has increased its stake in Riversdale Mining, Australia, by close to 2%. The move gives a clear sense that the company has no intention to exit Riversdale anytime soon, putting to rest speculations to the contrarily.

Prior to Rio Tinto’s AUD 3.9 billion offer for Riversdale in December 2010, TATA Steel had 24.4% stake in the company, now at over 26%

An analyst with an international research firm said: “Tata Steel has increased its stake yesterday morning. Its a clear indication that the company is not looking to exit Riversdale.”

(sourced from BS)

Indian coking coal needs may go up by 22pct next fiscal - Mr Jaiswal

Thursday, 03 Mar 2011

According to Indian coal minister Mr Sriprakash Jaiswal, India's coking coal requirements could increase by nearly 22% to 85.34 million tonnes in the next fiscal

Mr Jaiswal said that “Coking coal requirement for steel production is expected to be 85.34 million tonnes in 2011-12, as steel production is dependent on coking coal.”

Mr Jaiswal added that “Coal demand from the domestic cement industry also looks bright and it is expected that coal need would rise steadily during 2011-12.”

The domestic steel industry is expected to use about 70 million tonnes of coking coal in the current financial year ending Mar 31. The country is likely to produce about 65 million tonnes of steel in the current financial year. India meets about 70% if its coking coal needs through imports from countries including Australia, Indonesia and the US. The Minister said that thermal coal requirements for power utilities, too, would grow at 10% during the next financial year. (By TheHindu)

Tags : Australia, Indonesia, U.S., thermal coal, power plants

Arch Coal to pay USD 4 million for clean water violations

Thursday, 03 Mar 2011 |Reuters|

Reuters reported that Arch Coal Inc will pay a USD 4 million penalty for clean water violations at its mining operations in three states.

Arch Coal, which is the second largest US coal supplier, was charged with releasing too much iron, manganese, suspended solids and other pollutants into streams from four of its mining facilities in Virginia, West Virginia and Kentucky.

Ms Cynthia Giles, an assistant administrator at the Environmental Protection Agency, said that "Violations at mining operations can have significant environmental and public health consequences, including the pollution of the waters that people use for drinking, swimming and fishing."

She added that "It is critical that companies operating next door to homes, schools and other businesses meet the standards established to protect the health and the environment for these communities."

As part of the settlement, the company will take steps to prevent an estimated two million pounds of pollution from entering waterways. The company will also use a treatment system to reduce releases of selenium, a pollutant from mining, into streams.

Territory Resources profit slides on wet weather

Thursday, 03 Mar 2011

Australian iron ore producer Territory Resources Limited has delivered a solid H1 earnings performance, today announcing a AUD 9.93 million net profit after tax for the first half despite the impact of a particularly severe wet season in northern Australia on its production.

The result, which compares with the AUD 13.67 million net profit earned in the previous corresponding period, reflects strong iron ore sales prior to the commencement of the wet season, underpinned by continued buoyant iron ore spot prices.

The first half profit was struck on sales revenue of AUD 88.54 million (1H FY10: AUD 82.0 million) based on the production of 860,396 tonnes (1H FY 10: 1.066 million tonnes) of high grade lump and fines ore from Territory’s 100%-owned Frances Creek iron ore operation in the Northern Territory. Territory completed 12 shipments of iron ore to China during the period and continues to maintain its fully sold position through its strong association with Noble Resources Ltd (“Noble”) in Hong Kong, with ore production sourced from the Thelma Rosemary, Ochre Hill, Jasmine, Helene 6/7 and the newly opened Helene 3 and Helene 5 pits.

The strong cash generation of the operation underpinned a gross profit of $17.5 million for the first half (1H FY 10: AUD 11.2 million). The bottom line profit translated to earnings per share of 3.8 cents (1H FY 10: 5.2 cents).

The net earnings of the Company for the period have been applied to the repayment of the Noble debt, which had been reduced to USD 20.9 million as at December 31st 2010.

Commenting on the interim result, Mr Andy Haslam MD of Territory said that financial performance was a creditable achievement in what had been an exceptionally rain-affected period. He said that “This is a very pleasing result, reflecting a nimble operating approach at Frances Creek. Territory introduced a modified shipping program in late 2010, including lower-specification shipments, to maintain a consistent shipping performance during the start of the wet season and this has enabled us to deliver a solid financial result despite the heavy rains.”

He added that “We are pleased we were able to start the first half positively, as this has been a particularly big wet season. The rain that hit Queensland and the Northern Territory generated extremely difficult operating conditions which impacted our production and rail capabilities from late 2010. Consequently, we do not expect the second half results to be as strong as the first half.”

Tags : Iron ore spot prices, raw material, steel mills,

Noble Group seeks more Mongolia coal deals

Thursday, 03 Mar 2011

Noble Group Ltd the Hong Kong based supplier of energy, food and mining commodities, sees Mongolia as its next opportunity to expand in coal and build on its record 2010 profits.

Mr Ricardo Leiman CEO of Noble Group said that “We have staff looking at several opportunities in Mongolia, especially in exploration companies. Mongolia will be an area specifically for quarter two. We look at developing a similar model there to what we have in Indonesia and Australia.”

Noble won exclusive overseas marketing rights for PT Berau Coal, Indonesia’s No 5 producer, in November, adding to its Australian assets which include Gloucester Coal Ltd. The Berau deal will contribute nicely to 2011 earnings, Mr Leiman said after his company posted record annual net income of USD 606 million from USD 57 billion in sales.

Aspire Mining Ltd which explores for coal in Mongolia said that Noble bought 4.1% of its shares and is in preliminary talks on how the two can cooperate. Xanadu Mines Ltd which plans to develop coal and iron ore fields in Mongolia.(sourced from bloomberg)

Western Coal CEO to run Walter Energy after merger

Thursday, 03 Mar 2011 |Reuters|

Reuters reported that coal company Walter Energy Inc, which is in the process of buying Canada's Western Coal, said that Western CEO Mr Keith Calder will take the reins of the combined company after the deal is completed.

Walter Energy's interim CEO Mr Joe Leonard will step down from that position, but will remain on the company's board. The company said it expects the deal to close on April 1st 2011.

Walter agreed to buy Western Coal for USD 3.3 billion in December 2010, in a deal that will put it on track to becoming the world's No 3 producer of steel making metallurgical coal at a time of booming demand.

Mr Calder has been at the helm of Western Coal since late 2009 and was managing director of Rio Tinto's copper projects previously.

Western Coal has also nominated Mr Calder, Mr David Beatty and Mr Graham Marshall to serve on Walter's board.

Coal of Africa says NOMR application has been accepted

Thursday, 03 Mar 2011

Coal of Africa said that it will begin the rigorous process to get the final granting of a new order mining right for the Makhado coking coal project.

The company revealed that it has now received an acceptance letter from South Africa's department of mineral resources, following its NOMR application in January 2011. The application must now be processed before the NOMR can be granted. On AIM the shares gained around 5% in opening deals, rising to 96.75 pence a share.

CZA highlighted that it is currently working on extensive economic, social and environmental impact studies as part of a detailed Environmental Management Program.

It expects to start work on the Makhado project's detailed design phase once the definitive feasibility study has been finalized and approved slated for the June quarter.

Makhado is one of the company’s four main assets alongside the Woestalleen Colliery, the Mooiplaats thermal coal mine and the Vele coking coal project. The coking coal project is located in Soutpansberg, 60 kilometers from Musina in the Limpopo Province, close to Rio Tinto's Chapudi project and covers an area of more than 23,000 hectares. It is expected to start production in 2013.(sourced :proactiveinvestors.co.uk)

Tags :Vale coking coal project, Rio Tinto's Chapudi project, Mooiplaats thermal coal mine

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)