Business Standard reported that with environmental clearances having been suspended of all 93 operational iron ore mines in the state, its export from India would come to a halt.

Export from Karnataka and Odisha was already halted. The chances of revival of export during the current financial year is being almost ruled out.

The Federation of Indian Mineral Industries an apex body of mining companies reported total iron ore exports at 61.8 million tonnes during 2011-12, as against 117 million tonnes in the previous year from the three main states of Karnataka, Odisha and Goa. The states have been under a severe mineral crisis for two years.

Mr D V Pichamuthu director of Fimi south said that “It is a big disaster for the mining industry. The MoEF (union ministry of environment and forests) wants to clear mines one by one and the process would easily take up to six months, at least. This means a virtual halt on exports. Already, there are no exports from the eastern India states. Exports are already ruled out of Karnataka. Goa was the only saving grace.”

For the year ended March 2012, iron ore export from Goa was lower by 20% at 43.3 million tonnes, compared to the previous year. Goa largely produces low grade ore, a majority of which is exported.

Mr Anil Agarwal controlled Sesa Goa has planned to apply afresh for clearance to restart mineral extraction. Sesa Goa produced 12.7 million tonnes of ore in Goa during 2011-12, as compared to 14.4 million tonnes the previous year. It owns 374 million tonnes of reserves in Goa and Karnataka.

Other mining companies are awaiting a government notification or order to individual leaseholders on the issue. Mr Shivanand V Salgaocar president of Goa Mineral Ore Exporters Association said that “We have seen just the environment minster talking about the ban. No notification or order has been issued so far. We are waiting for the state government’s notification suspending clearances or any such order in this regard and draft procedures to obtain fresh ECs or revalidation of existing mines.”

Mr Haresh Melwani a miner exporter in the state said that ECs commonly take anywhere between one to two years from the date of application. Hence, there will be no export from Goa for at least a year from now. Total iron ore production in Goa is estimated at 5 million tonne this year, as against 53 million tonne last year. Iron ore produced in Goa is exported primarily to China and around 1 million tonne is currently at various jetties; these can be shipped.

Source - Business Standard

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