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Reuters reported Thursday that iron mining in Goa may resume in two months after the environment ministry lifted a ban that’s been in place since 2012. The ban was put in place as part of a crackdown on illegal mining.
Reuters reported Thursday that iron mining in Goa may resume in two months after the environment ministry lifted a ban that’s been in place since 2012. The ban was put in place as part of a crackdown on illegal mining.
As quoted in the market news:
Shares of Sesa Sterlite Ltd (NYSE:SSLT), the biggest miner in Goa, rose as much as 5 percent on Wednesday after Environment Minister Prakash Javadekar said on Tuesday he had lifted an “abeyance” on mines in the state. Sesa and other companies in Goa, however, are unlikely to be able to make any significant export as low world prices have made low-quality ore from India uncompetitive. Goa is pushing for a cut in the 30 percent export duty for its low-iron-content ore that is not widely consumed by Indian steel companies, said Parag Nagarshekar, deputy director of the state’s directorate of mines and geology. China used be the biggest buyer of Goa’s iron ore.
The Supreme Court of India last year gave its go-ahead to resume mining in the state, subject to companies getting environmental clearances, but capped total production at 20 million tonnes a year, less than half peak output.