Goa will lose overseas markets due to mining halt, say exporters

Panaji: The continuation of halt on Goa’s mining activity will result in the iron ore industry losing its overseas markets, built during the last six decades, the state’s mining exporters have said in a ‘white paper’.

The white paper, published by the mineral exporters titled ‘Sustainable legal operations - not suspension - the solution’, has said the halt on the mining industry will result in inflation and steep loss of revenues for Goa and India.

“If the suspension continues for long, the iron ore industry risks permanently losing its overseas markets, assiduously built up over 60-plus years, apart from the steep loss of revenues for Goa and India,” according to the paper.

“Iron ore exporters are also suffering losses, some of them irreparable, due to lost trade opportunities. The companies in Australia, Brazil, and South Africa and perhaps even other nations rush to fill the supply void with India’s export partners such as China, Japan, Korea and certain European nations,” the exporters said.

“The likelihood of regaining these markets recedes with every day that mining remains suspended in Goa,” they added.

The question mark on Goa’s mining industry was raised following a report by Justice M B Shah Commission, which had alleged large scale illegal mining in the state.

On September 12, 2012, the state government suspended all the mining leases, followed by Union Ministry of Environment and Forest suspending environment clearances and finally the Supreme court on October 5, 2012 suspending mining in Goa through its interim order.

“While it cannot be denied that fly by night operators could have indulged in illegal practices, it is unfair to paint the entire industry with the same brush,” the paper said.

“Unlike Karnataka and Odisha, Goa is unique and the state’s problems, at the most, actually have to do with irregularities and not illegalities,” the exporters said.

The industry players have said the suspension should not have been imposed as Shah Commission is yet to submit its final report on the Goa’s mining scenario.

“Since the intention is to stop illegal mining, this goal could very well have been achieved by waiting for the final report of Shah Commission and initiating action against only those found guilty,” the paper said.

“The suspension on the basis of unproven charges and allegations, before the final report is tabled, would seem very unjust, disturbing all norms of justice and fair play, besides disrupting the livelihood of lakhs and jeopardising the economic well-being of the state and the nation,” it added.

The white paper has also pointed out that apart from loss of livelihood and revenues, the country will also have to bear many hidden costs, such as having to spend thousands of crores of foreign exchange in importing iron ore at higher rates.

“Any rise in iron ore rates ultimately stokes higher steel prices. Steel being a core ingredient in many industries, it can have a cascading effect on the prices of many commodities, ultimately leading to higher headline inflation,” according to the paper.

PTI