Goa demands roll back of export duty on low grade iron ore

Goa has urged the Centre to roll back the increase in iron ore export duty especially that on the low-grade variety exported from the state.

“Goa’s ore largely being low grade [below 58% iron content], and not processed for steel making in the country, State of Goa has requested the Finance Ministry to do away with export duty. Currently the customs charge fifty per cent duty on export of this low grade ore from Goa. The export duty was done away with during 2016

This kind of gesture was necessary for sustainable mining in the state,” chief minister Pramod Sawant’s office said in a statement after his meeting with Union finance minister Nirmala Sitharaman on May 23rd where the matter was taken up.

The Centre on May 21 increased the duty on all grades of iron ore to 50 per cent to increase domestic availability.

Goa’s iron ore mining industry is completely dependent on exports since barring one steel plant, there are no domestic buyers for its ore given the cost of transportation from the mines to the plants.

Mining industry is currently at a standstill barring the export of the ore mined prior to the shuttering of mining in 2018 and the movement of that confiscated and auctioned by the government. Several companies have also been exporting ore claiming it has been extracted prior to 2007 when Goa’s mining leases expired.