Panaji: The Goa Chamber of Commerce and Industry (GCCI) has appealed to the Centre not to impose export duty on low-grade iron ore, warning that such a move would severely impact Goa’s mining sector, destabilise operations, and jeopardise thousands of livelihoods.
In a letter addressed to Union Minister of Mines G. Kishan Reddy on September 15, GCCI President Pratima Dhond flagged concerns over reports that the government may extend export duty to iron ore fines and lumps with less than 58 per cent iron content.
The apprehension arises from discussions at a high-level stakeholders’ meeting held on August 26, followed by the constitution of an Advisory Committee on August 28. Clause “Item E” of the committee’s Terms of Reference has led to speculation about an export levy on low-grade ores — creating “deep uncertainty” in Goa, where nearly all iron ore extracted falls below 58 per cent Fe.
According to GCCI, the average grade of Goa’s ore is just 54 per cent Fe, significantly lower than ores mined in Odisha, Karnataka, Chhattisgarh, and Jharkhand. Most Goan ore, it said, is unsuitable for domestic steel plants, which prefer higher-grade ores from eastern India that are cheaper and more efficient. Using Goan ore, the chamber noted, increases steel production costs due to higher coking coal consumption and logistics expenses, while even Goa’s pig iron units depend largely on high-grade imports.
The chamber stressed that export duties were originally designed to conserve high-grade ore for domestic use and secure export revenue — goals already met through the 30 per cent levy on ores above 58 per cent Fe. India, it added, is now self-sufficient in iron ore, with only surplus and low-grade stocks being exported.
On mining resumption in Goa, GCCI pointed out that operations remain in a “sensitive early phase” after years of suspension and litigation. Of the 12 auctioned blocks, only three have commenced production, with others expected later this year. The Supreme Court has capped extraction at 20 million tonnes annually, limiting Goa’s share to under five per cent of India’s total output.
“In this backdrop, an export duty on low-grade ores would not only undermine investor confidence but also cause an annual revenue loss of more than Rs 800 crore from current production alone,” GCCI warned. It added that such a levy could hurt competitive bidding in upcoming auctions, threaten operational viability, and stall the fragile recovery of Goa’s mining-dependent economy.
The chamber noted that it had briefed Chief Minister Pramod Sawant during his September 8 visit to GCCI, where he assured that the matter would be taken up. Reiterating its appeal, GCCI urged the Union government to retain the NIL export duty regime for low-grade ores from Goa and the Konkan region, citing the state’s unique structural challenges.
“Such an approach will support livelihoods, ensure industry viability, maintain fair trade, and prevent destabilisation of an already fragile sector,” GCCI said.
