PANAJI | March 09, 2017: Uplifted by government push and buoyed by global iron ore prices, Goa’s ore output in current year is inching towards its full extraction limit of 20 million tonne.

Sources in the department of mines said that ore production in 2016-17 could be close to the aggregate production cap granted by the Supreme Court as major leaseholders are operating at nearly full capacity. Production of ore in the current year (up to January 2017) is 12 million tonne. There are expectations that it will touch 16 million tonne for the whole year, the sources said.

Export statistics collected from the MPT reveals that shipments from mining companies have increased with iron ore export cargo of 12.3 million tonne during April 1 2016-February 2017. Vedanta, Fomento Resources and V M Salgaoncar are the top three exporters from the Vasco port and all three companies have ramped up shipments, said a MPT official.

In 2015-16, exports of iron ore from the MPT was 3.6 million tonne.

International prices of iron ore have firmed up in recent months making it attractive for mining companies to export.

A senior manager from a leading mining company said, “The market situation is turned slightly better and we are in better position compared to the last year when the export price did not cover the cost of production.”

The manager added that international price of high grade ore has improved significantly but price of low-grade ore produced in Goa is not increased correspondingly.

“Overseas buyers are quoting huge discounts for low-grade ore of 55-56 per cent Fe content,” he said.

The government is keen for higher output from mining companies to earn royalty and also because it bolsters the case for enhancement in extraction cap pending with the Supreme Court. It has urged the leaseholders to go in for full-scale mining operations and recently allotted the iron ore quota of mining leases not in operation to those that are in operation.

Goa’s iron ore production had been slated for a quantum leap in 2016-17 fetching sizable revenue to the government. In 2015-16 royalty from iron ore was Rs 88 crore.

Top mining company Vedanta Ltd., produced 5.2 million tonne in the first nine months of 2016-17, as per its quarterly results and the company could extract eight million tonne of ore for the full year. Other major leaseholders are also on the way to scaling production.

A SC-appointed expert committee had recommended that Goa’s extraction limit be raised to 30 million tonne providing there is adequate infrastructure for the enhanced capacity. Previously the state extraction limit was 43 million tonne.

(Source: http://www.navhindtimes.in/)