Iron ore export duty worries Goa’s mining industry

July 2, 2008

July 2nd (Business Standard) – Centre’s decision to impose 15 per cent export duty on iron ore has worried Goa’s mining lobby, which fears that the industry may face a severe setback on this account.

The duty, effective from June 13, 2008 is applicable to all kinds of iron ore, irrespective of its iron content.        

 

The Central government in its circular had said that the duty structure is changed to further strengthen a policy regime that enables conservation of good quality ore and ensures its availability to domestic industry at a reasonable price.        

 

But the mining lobby in this tiny coastal state has several apprehensions regarding the move.        

“The increase will severely impact Goan iron ore industry,” Goa Mineral Ore Exporters Association President Shivanand Salgaonar told reporters here while briefing presspersons in presence of Chairman and Managing Director of Dempo group of companies, Srinivas Dempo, Sesa Goa managing director P K Mukharjee and others.         

 

The increased duty will force the producers to stop extraction of low grade ore and its export, Salgaoncar said.        

 

“This will affect the mining industry in particular and Goan economy in general,” he said.        

Any effort to curb export of iron ore, without matching domestic consumption for the ore currently produced would  severely affect the iron ore industry and the employment and economic activity dependent on it, he added.

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