Goa miners fear export duty on low-grade ore

Panaji: The Goa Mineral Ore Exporters’ Association (GMOEA) on Sunday voiced concern over speculation about extending export duty to low-grade iron ore.

In a representation to the Centre, GMOEA urged reconsideration of any such move, warning it could disrupt mining in Goa, where iron ore is largely of low grade. The body argued that imposing duties would jeopardise livelihoods, stall regional economic activity, and cause wastage through stockpiling, given limited domestic demand for such ore.

Representing Goa’s mining stakeholders for over six decades, GMOEA responded to reports that duties on ores below 58 per cent Fe may be considered, following deliberations at an August 26 high-level meeting on reforms in iron ore and steel production. While the intent to ease supply bottlenecks is appreciated, the association cautioned against unintended consequences for Goa’s unique mineral profile.

GMOEA welcomed the September 2 formation of an Advisory Committee to address sectoral challenges, but noted concern over its Terms of Reference, particularly provisions on rationalising export policies. It warned this could extend duties to low-grade ore, despite its unsuitability for domestic steelmaking, where higher-grade ore from eastern India and Bellary remains cost-efficient.

Given higher coking coal requirements and additional logistics costs, Goan ore is uncompetitive even in export markets. Local pig iron units also mostly depend on imported or non-Goan ore. “Goan ore has historically been export-oriented, with minimal domestic use. Extending duties would bring little national benefit but severe hardship for Goa’s miners,” it said. The body estimated revenue losses exceeding Rs 800 crore annually from just three operating mines if duties are imposed. With more mines set to begin production, losses would escalate, discouraging fresh auction participation.

Mining, it stressed, only recently resumed under the auction regime, with three of 12 blocks operational and significant commitments made toward compliance, employment, and logistics. Investor confidence, it added, was underscored by a major steel company joining recent auctions.

GMOEA, citing the Mines Ministry’s 2025 report, said India is self-sufficient in iron ore, but low-grade stocks rose to 180 million tonnes, creating environmental concerns. At this fragile stage, an export duty could destabilise policy, revenue, and recovery.