In October 2012, Supreme Court put a ban on Iron ore mining and transportation in Goa, along with exports, due to illegalities in mining activities.
Clearances of a total of 80 operating mines were suspended by the environment and forest ministry then.
Goa, with 40 MnT capacity, accounts for 70% of total Indian iron ore exports and is waiting for Supreme Court's hearing, to allow exports of 11 MnT of the raw material , worth more than $800 million, that was mined before the ban imposed, as would impact the environment and could be washed away during monsoon.
“We've placed all the regulatory measures we have undertaken in front of the Supreme Court so that we can resume mining operations and exports under the strict supervision of the mines department.
The best case scenario is resumption of mining, partly or otherwise, in November/December, up to 60 mines would be able to reopen without much difficulty as they are away from forests and had committed little or no irregularities.,” said Prasanna Acharya, Goa's mines director – heads Goa's Directorate of Mines and Geology, which regulates the grant of mineral licenses and is responsible for enforcing rules pertaining to prevention of illegal mining, transportation and storage.
Once, exports re-start, spot iron ore prices in China might come down as its steel consumption has reduced. Also, other countries such as Indonesia, Malaysia, Brazil and Australia are looking forward to import Indian iron ore.
Prices in international would be under pressure on account of growing supplies in the year end.
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