India's Iron Ore Export Set to Rise, as Supreme Court Lifts Ban

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Researched by Industrial Info Resources India (Delhi, India)--India's iron ore exports, which declined from 168 million tons per annum (MTPA) in 2011-12 to a meager 12.57 MTPA in the last fiscal year, is set to see a major jump following the Supreme Court's lifting of mining restrictions in the coastal state of Goa.

The state on the Arabian Sea primarily produces low-grade iron ore, which constitutes nearly 55% of the total iron ore exports from India. Due to the mining ban, imposed by the Apex Court in September 2012, the exports dropped. Now, following an annulment of the order, exports from India are expected to go up again.

From April 2012 to January 2013, India's iron ore exports fell about 68.27% to 16.35 MTPA. The mining sector has also been hurt by India's multi-billion coal scam, "Coalgate" and long string of key amendments to the Mines and Minerals (Development and Regulation) Act.

The Supreme Court had banned mining in all 90 mines in Goa, to facilitate investigations into alleged illegal mining operations in the state. After the 18-month ban, the court on April 21 allowed mining to resume, with an annual cap of 20 MTPA. The court also cancelled mining leases that had been granted extensions after 2007 following the completion of their 20-year renewal period.

The State Government of Goa and various bodies have been seeking a review of the ban, saying legal mining must be allowed as the ban has impacted thousands of livelihoods, and has hurt state revenues. Mining accounts for nearly one fourth of Goa's gross domestic product (GDP) and about 70,000 people directly depend on the industry.

The mining ban in Goa, along with restrictions on production and exports, and a similar ban during the past two years in the neighboring state of Karnataka, have sliced India's iron ore exports by 85%, lowering the country's ranking from third to tenth in the global arena.

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