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Goa Iron Mines Granted Pollution Clearance, but Low Iron Price Will Likely Delay Restarts
Jul. 13, 2015 03:03PM PST
Base Metals Investing
Mining Weekly reported that while 57 iron ore mines in the Indian province of Goa have been granted pollution clearance, but the lack of interest in the raw material due to the sharp price drop means that operations will likely delay restarts.
Mining Weekly reported that while 57 iron ore mines in the Indian province of Goa have been granted pollution clearance, but the lack of interest in the raw material due to the sharp price drop means that operations will likely delay restarts.
As quoted in the market news:
According to a provincial government official, the local mines and geology department had issue environmental approvals to the 57 mines but imposed stricter conditions relating to water and air monitoring systems. These mines would be able to produce about 14-million tonnes a year of iron-ore, depending on their respective de jure mining plan approvals by the India Bureau of Mines, the official added. This production would be within the overall cap in production of 20-million tonnes a year set by the Indian Supreme Court.
The provincial government of Goa had renewed mining leases of 89 mines since operations were halted in 2012 on orders of the Supreme Court for widespread violations of mining laws and illegal mining. However, environmental clearances were granted to the first batch of 57 mines as they were among the ones that had approved environment clearances from federal authorities, the official said.
But according to an official with Goa Mineral Ore Exporters’ Association (GMOEA), while the pollution clearance and the last hurdle towards resumption of mining operations in the province was cleared, it had come during an adverse business environment when international iron-ore prices were in free fall and there were no international buyers for the raw material. He said that Goa iron-ore fines were predominantly of lower grade (with an iron content 58% and lower) and bulk shipped overseas as blast furnaces of local steel mills were not equipped to use such low grade fines. Several traders said that the local authorities had held six rounds of e-auctions to sell iron-ore stock lying idle at pitheads which had been mined prior to the apex court ban on mining in 2012.
