Team Goemkarponn
PANAJI: The Goa Mineral Ore Exporters’ Association (GMOEA) has raised strong objections to speculation that the Centre may extend export duties to low-grade iron ore (below 58% Fe), warning that such a move would cripple Goa’s mining sector, which is heavily dependent on exports.
In a formal representation to the Government of India, GMOEA urged policymakers to reconsider any proposal, noting that Goa’s ore is predominantly low-grade and unsuitable for domestic steelmaking. “Imposing duties will jeopardize livelihoods, disrupt mining operations, and lead to wastage of a valuable resource through stockpiling,” the Association cautioned.
The concerns come after media reports suggested that the issue was discussed during a high-level stakeholders’ meeting on August 26, co-chaired by the Ministers of Commerce & Industry, Coal & Mines, and Environment, Forest & Climate Change. While the meeting focused on reforms to boost iron ore and steel production, GMOEA warned against “unintended consequences” for regions like Goa with distinct mineral profiles.
Although GMOEA welcomed the formation of an Advisory Committee on September 2 to examine sectoral challenges, it expressed worry over the committee’s terms of reference, particularly provisions on “rationalization of export policies,” which could pave the way for an expanded duty regime.
The Association argued that Goa’s low-grade ore finds little takers domestically. Most Indian steel producers prefer higher-grade ore from eastern India or Bellary due to cost efficiency, while local pig iron units also depend on imported or non-Goan ore. “Extending duties to Goa’s ore would bring little national gain but cause severe local damage,” GMOEA stressed.
According to the body, Goa risks losing over ₹800 crore annually in revenues from just three currently operational mines if export duties are imposed. With more mines expected to start production soon, the losses could multiply and discourage participation in future auctions.
Mining in Goa has only recently resumed after years of suspension, with 12 iron ore blocks auctioned so far, three of which are operational. Investors, including a major steel company, have committed resources toward compliance, employment, and infrastructure. An unstable export regime, GMOEA warned, could derail this fragile revival.
The Ministry of Mines’ Annual Report 2025 has already confirmed that India is self-sufficient in iron ore, with mine-head stocks of low-grade ore rising from 126 million tonnes in 2020–21 to about 180 million tonnes in 2024–25. With domestic demand minimal, the growing stockpiles have also become an environmental concern.
“At this critical juncture, an export duty would unsettle the policy environment, impact state revenues, and undermine investor confidence,” GMOEA concluded, urging the Centre to protect Goa’s mining viability while sustaining livelihoods and fair trade practices.
