Byline: The Goan Network
Brushing aside the concerns that slowing Chinese economy will spell a doomsday for Goan mining sector, Vedanta subsidiary, Sesa Sterlite's Executive Director, P.K. Mukherjee, said, “Last year, China imported 933 million tons (MT) of iron ore from across the world. This was more than 70% entire world’s iron ore imports.
Even at the peak of mining, Goa produced not more than 45-50 MT ore per year. This just goes on to show that Goa’s contribution to overall Chinese demand is very little. There will always be demand for Goan ore even if Chinese economy goes through a slowdown”.
Mining companies and Goa’s administration has been quite anxious about China’s slowdown for some time now. Even at the e-auction of the ore, hardly a few buyers are spotted. Mukherjee continued, “Goan iron ore is coarse but that works in the larger scheme of things. It brings down the overall cost when mixed with fine ore. Now, Chinese steel-makers are mixing Goan ore with their fine ore, earlier Japanese were doing the same thing.”
Mukherjee’s remarks clearly show that if Goa and China sit together, there will be absolutely no issues for the mining sector. His comments also show that the very reason Goan ore is in demand is because it is not that fine.
