Export duty will disrupt Ops: Goan miners' assn tells Centre

PANAJI
Amid reports that export duties on low-grade iron ore may be considered in the upcoming Union Budget 2026-27, the Goa Mineral Ore Exporters’ Association (GMOEA) has written to the Centre strongly opposing any such move, warning that it could severely disrupt mining operations in the State.
In a formal representation to Union Minister for Mines Piyush Goyal, the association said that imposing export duty would have serious consequences for Goa’s mining sector, where iron ore is predominantly of low grade, with iron content below 58 per cent Fe.
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.
The GMOEA, which represents key stakeholders of the Goan mining industry, underlined the rationale for continuing export duty exemptions for low-grade iron ore. Instead of levies, the association said efforts should focus on ensuring the smooth operationalisation of auctioned iron ore mines to augment production.
GMOEA Joint Secretary Glenn Kalavampara cautioned that at this sensitive stage of mineral block e-auction, the imposition of any additional levy such as export duty would undermine project viability, deter competitive bidding, reduce state revenues, and jeopardise ongoing operations.
He said that Goan iron ore, characterised by lower grades and higher impurities, has historically been export-oriented due to limited scope for domestic consumption. He pointed out that the average grade of Goan iron ore is around 54 per cent Fe, with virtually the entire production falling below 58 per cent Fe.
“These ores are largely unsuitable for domestic steelmaking, as higher-grade alternatives are available elsewhere. Even pig iron and pellet units in Goa depend on higher-grade ore sourced from outside the state or through imports,” Kalavampara said, adding that Goa’s production is predominantly fines-based and remains seasonal due to heavy monsoons.
He also welcomed the Centre’s recent special assistance package of Rs 400 crore to Goa to support the commencement of production from auctioned mineral leases. “Such support is encouraging and should help address key bottlenecks faced by the industry,” he said.
The representative noted that the Ministry of Mines has been proactively engaging with state governments to resolve issues related to the operationalisation of auctioned mines, particularly in regions critical for domestic supply, even as domestic iron ore production continues to show steady growth.
Kalavampara emphasised that faster and more streamlined statutory clearances would significantly aid the timely commissioning of mines and improve overall outcomes.