PANAJI
Amid speculation about a possible imposition of 30 per cent export duty on low-grade iron ore, the Goa Mineral Ore Exporters’ Association (GMOEA) on Sunday urged the Centre to reconsider the move, claiming that the State could face an annual revenue loss of over Rs 800 crore.
The exporters’ body, which had recently met Chief Minister Pramod Sawant expressing delay over various clearances to auctioned mineral blocks, said that with more mines set to commence, the export duty move will discourage participation in upcoming auctions.
According to media reports, the Central government intends to impose a hefty 30 per cent duty on low grade iron ore exports from October to ensure an uninterrupted supply to steel companies at lower prices.
Raising concern, the GMOEA called on the Union government not to go ahead with the move, warning that it could severely disrupt mining operations in Goa, where the iron ore is predominantly of low grade.
Given the region's unique mineral profile and the lack of domestic demand for such ore, GMOEA claimed that imposing export duties would not only jeopardise livelihoods and regional economic activity but also lead to stockpiling and wastage of a valuable natural resource.
“If an export duty is imposed, Goa could face a revenue loss of over Rs 800 crore annually at current production levels from just three operational mines,” the association said.
GMOEA further said that Goan iron ore, being predominantly low-grade, is largely unsuitable for domestic steelmaking, where higher-grade ore from eastern India or Bellary is preferred due to better cost efficiency.
“Its use in steel production raises costs, especially due to higher consumption of imported coking coal. Additional logistics costs from Goa further reduce its competitiveness, even for exports,” the association said adding that even local pig iron units mostly depend on imported or non-Goan ore.
“As a result, Goan iron ore has historically been export-oriented, with limited domestic demand. So extending export duties to Goa would offer minimal national benefit while imposing significant hardship on the state's mining sector," it claimed.
The Association pointed out that mining in Goa has only recently resumed under the auction regime. "Of 12 auctioned blocks, 3 are operational, with more expected soon. Investors have made significant commitments towards compliance, employment, and logistics. A major steel company's participation in auctions affirms the process's credibility," it said.
The mine owners said avoiding such a duty will safeguard livelihoods, sustain mining viability, and uphold fair trade practices in a sector that remains in a fragile recovery phase.
The GMOEA said that according to the Ministry of Mines Annual Report 2025, India is 100 per cent self-sufficient in iron ore, with no shortage to meet its steel production goals.
“At this critical phase, introducing an export duty risks disrupting the policy environment, affecting project viability, future bidding, state revenues, and ongoing operations,” the GMOEA claimed.
