Steel mills in Goa to hurt on expected closure of mines

There is talk that those who have
not got the no-objection certificates from the chief wildlife warden might be
served notices, Goa Mineral Ore Exporters' Association executive director S.
Sridhar said

Miners in Goa are bracing for
state action against rule breakers that may involve mine closures, the head of
an iron ore trade body said on Thursday. This follows the drive against illegal
mining that led to a ban in Karnataka.

Sridhar did not say how many
mines could be in the dock, but the state has been investigating miners as has
been done in Orissa and Karnataka.

Goa produces about 45 million
tons (MT) of iron ore, mostly powdery, low-grade iron ore fines, but has a
significant role in the foreign market as most of it gets exported to China.

Any bar on mining in Goa could
see iron ore prices raising overseas, which will be mirrored in the Indian
market as well and that could hurt steel companies in the country.

On Thursday, steel minister Beni
Prasad Verma told reporters his ministry had written to the finance ministry
asking for raising the export duty on iron ore to 30% from 20% so that steel
makers don't face a shortage of the key raw material.

Over 400 iron ore traders in Goa
have come under the scanner after a preliminary inquiry by the Central
government-appointed Shah Commission pointed to large-scale illegal mining in
the state.

The state mines and geology
department has summoned all the traders registered with it to verify the source
from which they have been procuring the ore.


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