Goanese iron ore miners upset over hike export duty - 04 Jul, 2008
BL reported that Goa’s private sector mining industry is upset over the recent increase in export duty on iron ore exports imposed by the centre.
Mr Shivanand Salgaonkar president of Goa Mineral Ore Exporters’ Association said that "The ad valorem export duty on iron ore at 15% could result in 20% to 22% decline in state’s annual iron ore exports." He added that a serious decline in iron ore exports of the state could have a negative effect on Goan economy in general and the mining industry in particular.
Mr Salgaonkar said that if the export duty was not withdrawn, it would make the exports economically unviable forcing iron ore producers to reduce or stop production and exports of low grades, leading to various socio economic and environmental problems. He added that Goan mining industry had invested heavily in facilities for beneficiation technologies to upgrade the domestic ore deposits for export, which otherwise would not have had any market. He also said that there was demand for low-grade ore, especially from China, only in recent years, which otherwise remained unconsumed.
Mr PK Mukherjee of Sesa Goa and Mr Srinivas Dempo chairman of Dempo Mining group were also present at the press conference which highlighted the need for the industry to seek relief from the increased export duty, which, according to them would amount to about INR 800 per tonne on an average.
Mr Mukherjee wondered why the iron ore industry is being singled out for taxation and burdened with additional duty every now and then. He added that regulatory atmosphere could create problems for the mining industry, which had toiled to enter into long contracts to ensure exports of otherwise rejected ore.
According to mining industry, around 12,000 people are directly employed in the industry while 30,000 others are indirectly dependent on it.
