Regaining lost mining market will take time:GMOEA

PANAJI: The Goan mining industry’s struggle to gain lost foothold in the iron ore market continues.
The iron ore season started end September 2016 and has seen exports of around four million tonnes, with the majority of the ore being exported to China.
Secretary of Goa Mineral Ore Exporters Association (GMOEA), Glen Kalavampara told TOI that most exports this financial year have been to China and that companies have not been able to make any progress in exporting ore to Europe.“We [mining companies] are approaching Japan and South Korea to sell Goan iron ore,” he said, and added that regaining lost market is a challenge that will take them some time to surmount.
To encourage export of low-grade iron ore, the Union finance ministry abolished export duty on lumps and fines with iron content below 58%, while continuing to levy 30% export duty on ore with iron content above 58%.
“Mining companies are getting feelers from buyers that they require high-grade iron ore, which is above 58%, but due the export duty on high grade ore, it is not economically viable to export high grade ore,” Kalavampara said and added that the market was currently volatile and the demand for low grade ore is not encouraging. China, too, wants high grade ore due to increase in coking coal price, he said.
Goa also faces tough competition from Australia and Brazil, and to a smaller extend from South Africa, Iran and Cananda, countries that have recently started exporting ore.
“Together, Australia and Brazil control 80% of the total iron ore trade,” Kalavampara said. Even at its peak, India hardly factored for 9% of the total iron ore market.
During the financial year 2015-2016, Goa exported 8.8 million tonnes of iron ore of which 5.4 million tonnes came from e-auction and 3.4 million tonnes from freshly extracted ore.
In April 2014, the Supreme Court, in a judgement, set a cap of 20 million tonnes per year on iron ore extraction in the state. Mining companies are optimistic that upon review, the capping will be increased to 37 million tonnes. An expert committee appointed by the apex court, has recommended a cap increase to 37 million tonnes depending on the infrastructure available.
Of the 88 mining leases renewed by the state government, the Goa State Pollution Control Board (GSPCB) granted only 62 mining companies consent to operate under the Air and Water Acts, with an iron ore extraction limit of 15.2 million tonnes.