Parul
The Goa chapter of the Mining Engineers Association of India (MEAI) has urged the Centre to review and completely withdraw the 50 per cent export duty imposed on low grade iron ore (below 58 per cent).
The Association claimed that the imposition of export duty will have far-reaching ramifications not only on the iron ore mining industry in Goa, but also it will impact all the operations across the country producing low grade iron ore.
The MEAI-Goa chapter mentioned that the iron ore industry is already hit by several factors, including a four-year long mining stoppage in the state leading to the destruction of over 3 lakh livelihoods.
Also Read: Aluminium industry seeks reduction in basic custom duty
This export duty structure by the Central government will further worsen the situation by forcing many low grade iron ore and merchant pig iron producers to shut down their operations due to economic unviability of the operations, leading to job losses of the mining professionals and workforces engaged in such operations.
The chapter also expressed concern over huge stock piling of low grade ironore across all the mining operations in the country which is non saleable domestically and won’t be economically feasible for exports due to the 50 per cent export duty.
Also Read: As Goa moves on iron ore mining leases, can industry hope for a revival?
The Association highlighted that imposition of export duty to the tune of 50 per cent has made iron ore export unviable and is as good as export ban. This has already led to significant drop in iron ore prices across the country and has also reduced revenues accruing to state governments in the form of auction premium, royalty, DMF and NMET. Lower collection of these funds and levies will adversely impact the state revenues and socio-economic development activities in the peripheral areas of the Ironore mines.
