Goa's Mining Industry on the Brink: Export Duty Threatens Fragile Recovery

A wave of apprehension is sweeping through Goa's vital mining sector as industry leaders voice grave concerns over the potential imposition of a steep export duty on low-grade iron ore. After years of turmoil and a recent, hard-won resumption of operations, miners warn that a proposed 30% duty could plunge the industry back into crisis, threatening livelihoods and economic stability across the state.

The Goa Mineral Ore Exporters' Association (GMOEA) and key players like Fomento Resources have sounded a clear alarm to the government.

Their message is unequivocal: such a duty would render the export of Goa's predominantly low-grade iron ore (typically 50-57% Fe content) economically unviable, effectively slamming the brakes on a sector just finding its feet after a protracted ban. Currently, iron ore with Fe content below 58% enjoys a zero export duty, a policy crucial for Goa given its geological profile.

For years, Goa's mining industry has battled headwinds, including high operational costs, freight charges, and market fluctuations.

The imposition of a new 30% duty, as reportedly considered by the Ministry of Mines, would be a catastrophic blow. "This potential duty will completely destroy the industry," stated a representative from Fomento Resources, highlighting that even without the duty, profitability is razor-thin due to existing high costs.

The industry estimates that such a move would make exporting low-grade ore financially impossible.

The ramifications extend far beyond corporate balance sheets. Thousands of jobs, both direct and indirect, depend on the mining sector in Goa. From mine workers and truck drivers to ancillary service providers, the industry supports a vast ecosystem.

A collapse in exports would inevitably lead to massive layoffs, pushing families into financial distress and creating significant social unrest. The fragile recovery witnessed since mining restarted in 2018, following a Supreme Court ban, would be shattered, reversing any progress made.

While some argue that an export duty could benefit domestic steel manufacturers by increasing the availability and lowering the cost of iron ore within India, Goa's miners contend this comes at an unacceptable cost.

They emphasize that the unique characteristics of Goan ore, primarily its low-grade nature, make it particularly vulnerable to such duties. They are not competing with high-grade ore, but rather struggling to maintain a niche in the global market under already challenging conditions.

The GMOEA is fervently appealing to the government to reconsider any such proposals.

They urge policymakers to recognize the precarious state of Goa's mining industry and to maintain the existing zero-duty policy for low-grade iron ore. Their plea is not just for an industry, but for the economic well-being and stability of an entire state, hoping their voices are heard before a critical decision irrevocably alters Goa's future.