KOLKATA (miningweekly.com) – Optimism over getting more than 40 iron-ore mines in the western Indian province of Goa to resume operations is fast receding.
Despite an announcement two months ago that 40 iron-ore mines will resume operations as monsoon rains were over, mines are slow in getting back into production.
At least two Goa-based mine owners have said that the number of mines resuming operations will be short of government’s expectations as little is being done to relax restrictive policies.
Miners have voiced disappointment that Goa has not relaxed a ban on dumping rejects outside leasehold areas. They believe the ban should be lifted as depressed demand for iron-ore fines in China is forcing miners to carry higher stocks and rejects. Alternatively, miners say they will have to cut back production as handling rejects will be a formidable challenge.
Goa miners are also hesitant to resume operations as there is no clarity on the process of distribution of production among various mines from the cap of 20-million tons a year set by India’s Supreme Court.
Miners say that some owners are ready to resume production, but that they have not received their production quota from the 20-million-ton-a-year allocation, while others have been allocated a quota, but have not yet resumed production.
The Goa government is reportedly considering redistributing already allocated production quotas to get more mines into production. Research into a new redistribution policy, currently in the works, will probe why mines that have been allocated a quota have not resumed production. Depending on the replies, the government plans to withdraw quotas allocated to currently nonoperational mines and pass them on to operational mines to enable a faster production ramp-up.
On Monday, the Goa government allocated iron-ore production quotas to four more mines, enabling them to resume production. A government official said that production limits set for these four mines were allotted proportionately and after factoring in the 20-million-ton-a-year cap.
Salgaonkar Mining Industries was allocated a quota of 0.046-million tons, Salitho Ores a quota of 0.277-million tons, Sova Iron Ore 0.346-million tons and Marzook and Cadar 0.115-million tons.
A total of 16-million tons have now been allocated, leaving another 4-million tons left for yet to be operationalised mines in the province, the official added.