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Iron-ore mines in Goa close down

15th March 2018

By: Ajoy K Das

Creamer Media Correspondent

     

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KOLKATA (miningweekly.com) – Iron-ore mining in the western Indian coastal province of Goa came to a halt on Thursday in accordance with an order issued by the Supreme Court last month.

However, even as miners downed shutters and evacuated equipment from mines, on Wednesday night a Goa government Cabinet Committee recommended that the government file a review petition before the Supreme Court, seeking that miners be permitted to continue operations until such time as new mining leases were put up for auction.

The committee said that the Goa government should approach the Attorney General of India and file a review petition before the court immediately.

Goa Chief Minister Manohar Pannikar would make a final decision on the recommendations of the committee, government officials said.

The Supreme Court in a verdict last month held that the second renewal of mining leases for 88 iron-ore mines in Goa was illegal as allocation of the leases was not through the mandatory auction route as laid down in mining legislation and that all the mines should stop operations from March 15.

Goa, which predominantly produces low grade iron-ore fines for exports, produces about 20-million tons a year, a yearly ceiling also laid down by an earlier verdict of the apex court.

It remained unclear whether the federal government would support the Goa government’s plan to seek review of the court order, considering that on Monday, the federal government rejected any political intervention and directed Goa to stick to the court deadline to close down mining operations and complete the auction process to get them re-started under new lease holders.

A delegation comprising representatives of all political parties active in Goa met federal Ministers earlier this week seeking that the Indian government promulgate an ordinance to bypass the Supreme Court ruling.

However, the federal Ministers turned down any intervention into the Supreme Court order or promulgate any central ordinance and, instead, directed that the Goa government hold auctions and complete the process within the next two months, as the only option to get the mines to resume operations at the shortest possible timeframe, the official added.

As Goa mines shut down operations, the fallout has already started to percolate down to user industries.

Sponge and pig iron manufacturers represented by the Alloy and Steel Manufacturers’ Association of Goa, in a communication to the Steel Ministry, has warned that shortages of iron-ore from Goa mines threaten closure of pig iron and sponge iron manufacturing plants in the western region.

The association has sought that the steel and mines Ministries ensure supplies of iron-ore to such plants from mines in other parts of the country.

Four sponge iron producers and 39 secondary steel producing companies are likely to be affected by the closure of iron-ore mines in Goa.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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