The Shah Commission, probing
illegal mining in Goa, is expected to release its report later this week.
Considering the mining ban in Karnataka, experts are cautious about the significance
of the findings of the report that might impact Sesa Goa, the largest and only
listed iron ore firm from the state.
PINC Research has said in a
report, “Even though Sesa Goa has indicated little involvement in the alleged
illegal mining, any move of blanket ban on mining/exports from Goa would impact
the company adversely, as Goa currently accounts for approximately100% (barring
a little sale in Karnataka through e-auctions) of Sesa Goa's iron-ore
operations.”
Sesa Goa is the largest exporter
of iron ore from Goa, with around 34% of market share. Goa accounts for 22% of
iron ore with output of 50mntpa (million tonnes per annum), almost all of which
is exported for its low grade and lack of sufficient beneficiation and
pelletisation capacity.
“Even if the recommendation is
only for ban on exports, this could bring Goan iron ore mining to a halt, as
the entire output is exported and there is a lack of domestic demand for the
low grade ore”, said a research analyst from a Mumbai-based brokerage firm.
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