Sesa Sterlite expects to restart mining in Goa within two weeks as it waits for environment clearance and clarity on dumping waste outside the lease area.
The Goa Government last Thursday revoked its 2012 order that had halted the over 60-year-old-mining industry in the State.
The new order will pave the way for the resumption of mining activities in the State, pending the lifting of the ban imposed by the Ministry of Environment and Forests.
Aniruddha Joshi, Vice-President, Corporate Affairs, Sesa Sterlite (iron ore business) told
In fact, mines have been following this process till the Supreme Court in April last year interpreted the Act and made dumping outside the lease area illegal, he said.
Sharp price fall This apart, the sharp fall in iron ore prices in the last few months poses a different challenge.
The price of ore with 63 per cent iron content has fallen to $55 a tonne from $175 a tonne, while the price of Goa ore with 56 per cent iron content has dipped to $35 a tonne.
It has become increasingly difficult to find a market for Goa iron ore with additional charges that include 30 per cent export duty, 15 per cent royalty and 10 per cent Goa development fund.
The Central Government has to remove the export duty to make mining viable in the State, said Joshi. China has been the readymade market for low-grade iron ore from Goa.
Chinese steel companies’ beneficiate the low-grade iron and mix with the high grade iron ore to bring down the cost.
“It’s important for the Government to act swiftly as almost one lakh families meet their daily needs through direct employment from the mining industry in Goa. We ourselves spend about ₹1 crore daily on salaries for our employees despite they do not generate any revenue,” said Joshi.
In Karnataka, Sesa plans to restart mining in 10 days as it has received environment clearance for 2.9 million tonnes for this fiscal.
With just two months remaining in this financial year the company would produce as much as it can, he said.