PANAJI | June 02, 2017: Affected by poor market conditions and issues relating to air pollution and transportation, iron ore production for the first two months of 2017-18 has failed to achieve its pre-monsoon target.
The production shortfall is about three million tonne, an industry insider said on Thursday.
He said that collective output of the industry is likely to be in the range of five million tonne against the target of eight million tonne set by the government.
Several leaseholders were slow in meeting the target due to sudden deterioration in international market, said the industry source.
Other reasons were villagers’ opposition to mining over air pollution in lease areas and transportation strife.
The government is estimated to have earned about Rs 75 crore in royalty during the two months of April and May 2017.
In April 2017, the department of mines had set a target of eight million tonne to ensure equitable distribution of production, and companies had agreed to produce the output. However, with the early onset of rains, which halted mining activities, the production target is in deficit. In 2016-17, Goa’s iron ore output touched its full extraction limit of 20 million tonne on the back of slight firming up of international prices and exports turning remunerative to the industry
Ore exports through the MPT during 2016-17 were in the region of 15 million tonne compared to 3.6 million tonne in 2015-16.
The industry source said the deterioration in the market came about in April 2017 when international price for low-grade ore dropped by about 30 per cent.
It must be noted here that the Supreme Court has considered enhancing production capacity in Goa to 30 million tonne.
The government in 2016-17 earned Rs 342 crore royalty from mining companies compared to Rs 88 crore in 2015-16. The major increase in royalty earnings came during the last quarter of the financial year (January-March 2017) when companies stepped up production.
The government is keen that mining companies increase output to earn royalty and tax revenue and also bolster the case for enhancement in extraction cap.
Previous to the mining closure in September 2012, the state extraction limit was 43 million tonne.
(Source: http://www.navhindtimes.in/)