Panaji, Jan 27 (PTI) The Goa Mineral Ore Exporters' Association (GMOEA) wrote a letter to the Centre on Tuesday expressing concerns over reports suggesting the imposition of export duties on low-grade iron ore.

In a formal communication to Piyush Goyal, Secretary to the Ministry of Mines, the association urged the government not to consider any such move, claiming that it could severely disrupt mining operations in Goa, where iron ore is predominantly of low grade (below 58 per cent Fe).

The representation by GMOEA, a representative body of key stakeholders of the Goan mining sector, underscored the rationale for export duty exemptions of low-grade iron ore.

GMOEA Joint Secretary Glenn Kalavampara said Goan iron ore, essentially being of lower grade & higher impurities, has historically been export-oriented due to limited scope for domestic consumption.

Ad hoc and frequent fiscal interventions, such as imposition of export duties on low-grade iron ore (below 58 per cent Fe), create significant uncertainties and affect government revenues for the Konkan region with constrained market access and limited price realisation for such material, Kalavampara said.

On the contrary, all efforts should be made to ensure operationalisation of auctioned iron ore mines to augment production, he appealed to the government.

Goan iron ore has distinct characteristics, with the average grade being around 54 per cent Fe and virtually all production below 58 per cent Fe. These ores are largely unsuitable for domestic steelmaking, as higher-grade alternatives are available elsewhere, he said.

Even pig iron and pellet units in Goa rely on higher-grade ore from outside the state or imports. Goa’s production is predominantly fines-based and seasonal due to heavy monsoons, he added.

Kalavampara noted that the Centre recently granted a special assistance package of Rs 400 crore to Goa to support the commencement of production from auctioned mineral leases.

Such support is welcome and should help address industry bottlenecks, he said.

The representation noted that the Ministry of Mines has been proactively engaging with state governments to resolve issues related to the operationalisation of auctioned mines, particularly in regions critical for domestic supply. At the same time, domestic iron ore production has shown steady growth, he said.

Kalavampara said that in this context, faster and more streamlined statutory clearances would significantly aid timely commissioning and improve overall outcomes.

The resumption of mining in Goa following the auctions has been challenging yet encouraging. Of the 12 auctioned blocks, five have commenced production, with several more expected to start operations within the current financial year. The state government also intends to auction additional blocks before the end of the fiscal year.

Kalavampara said that at this sensitive stage, the imposition of any additional levy, such as export duty, would undermine project viability, deter competitive bidding, reduce state revenues, and jeopardise ongoing operations. PTI RPS GK

Low-grade iron ore exports may face export duties, risking Goan mining operations, investment and auctioned-mine viability. Imposition of an export duty on low-grade iron ore would disrupt Goan mining by creating fiscal uncertainty, constraining market access and price realisation for ore largely unsuitable for domestic use, undermining the operationalisation and viability of auctioned mines; stakeholders urge reliance on targeted assistance and streamlined statutory clearances rather than new levies.