Raw material exports are likely to get a new phase with the Supreme Court decision to auction the mined Iron ore in Goa.
Supreme Court on 11 November, 2013 allowed the auction of 11 MnT Iron ore dumps from the Western province of Goa. The mining operations will still be at halt at least till February, 2014 as ordered by the Apex Court. The auctioned raw material will be used in domestic or it will be exported, is not yet decided.
Court will form a panel of six members who will take decisions on the annual extraction of iron ore from Goa. Their decisions will be based on ecological balance and conservation of the non-renewable resources for future generations. The panel will submit their final report by 15 February, 2014.
If the court allow for iron ore exports, it will boost the overseas shipments of the raw material which was declining off late. It will also help enhance foreign currency earnings in the country. Iron ore production in India is affected mainly because of the ban imposed on mining operations in Goa and Karnataka.
Import enquiries from the Chinese traders were high since last two months. Also, Indian offers for high grade Iron ore fines were showing an upward trend. While, Iron ore mined from Goa is of low grade with an average Iron content of about 58%.
The Court’s decision on exports might give a slight ray of hope to the exporters and help boost Indian raw material exports. India’s iron ore exports have come down from a highest of 117 MnT in FY10 to 18 MnT in FY13. The exports are not expected to exceed over 10 MnT in FY14 if the court does not lift up the imposed ban soon.