Iron ore exports from Goa, that started early this week, after a gap of 3 years, is expected to gather momentum in the coming months, sources informed.
The sources said that mining companies that bid for e-auctions of iron ore will begin exporting the ore soon, adding, the actual mining is expected to commence after some time as it would involve a lot of preliminary work.
Around 4-5 companies bid during the e-auctions. Confirming plans of iron ore exports, a senior official at V M Salgoancar said that logistics are being put in place for overseas sales to take off.
“Logistics include talks with truckers, barges and transhippers and exports are planned for November,” said the official.
V M Salgaocar purchased some 0.7 million tonne of ore during e-auctions, and other companies such as Sociade De Fomento, Bandekar Bros and V D Chowgule, which also bought the ore during the e-auctions, are next in line for the exports.
Sources said with international ore prices in free fall, only exports of recently purchased e-auctioned ore are viable.
Meanwhile, a senior official of Vedanta said that the company for sure will be exporting more ore to China.
Vedanta purchased over 12 lakh tonne of iron ore during the e-auctions, a part of which is earmarked for its Amona pig iron plant.
The company is exporting e-auctioned ore at present as productions at its mines are yet to commence.
Before the mining activity was shut down in September 2012, Goa had exported 54 million tonne of iron ore.
Goa Mineral Ore Exporters Association (GMOEA) said that industry has every intention to increase the exports, and an early correction in export duty would definitely help in the process.
Current export duty on iron ore is at 10 per cent.
Transporters are asking for higher rates for ferrying ore and that could be a hurdle to exports.
Meanwhile, the government vide notification published in official gazette dated October 23 2015, empanelled a five-member committee under the chairmanship of principal secretary of mines to study in detail the reports of the comprehensive audit carried out by chartered accountants on mining leases and traders for the period from 2007-08 to 2011-2012.
The committee comprises director of mines and geology, additional secretary (finance), and three chartered accountants – Ashish Prabhu Verlekar, Kiran Kharangate and Satyaprakash Kamat.
The committee will recommend action to be taken, and has a term of one year from the date of publication in the official gazette.
The remuneration of the committee members and other expenditure incidental to and incurred for carrying out the work of the committee will be notified separately.
In a bid to assess the exact loss to the state due to illegal mining and recover the same, the government in 2014, had appointed a panel of 15 CAs to examine detailed transactions of iron ore extraction and exports.
Details such as production, export, purchase of ore, domestic sale, iron ore storage outside mining lease sites, opening and closing stocks, etc, were examined by the panel of CAs.
Source: http://www.navhindtimes.in/