Govt joins rush to make money from ore reject TNN, Jul 13, 2010, 06.12am IST
PANAJI: Almost 1,000 million tons of very low grade iron ore in the form of reject-dumps lying neglected for decades in Goa's mining belt have suddenly attracted interest of miners and the government alike.
With the boom in the China market for low grade ore, people are now claiming the dumps intending to export the ore. The government, too, wants to cash in on the boom and is seeking to establish clear ownership of the dumps so that royalty can be levied.
Prior to August 2009, royalty on low grade ore with iron content below 62% was about Rs 8 per ton, sources said, adding that it's today Rs 150-160. As a result, the government's annual collection, which used to be around Rs 30 crore, shot up to Rs 300 crore in 2009-10. It is also the first time in Goa's mining history that the state has earned such high revenues. Director for mines Arvind Lolienkar recently projected next year's royalty at Rs 350 crore.
While that is the estimate from the exports of regular ore, royalty from the 1,000 million tons of hitherto neglected rejects will swell the state's kitty further. Official sources said that for the last three to four decades, Goa's cut-off grade for ore was 58% iron content. Anything below that used to be thrown out. With the boom in the China market, even ore with 45% iron has a market.
Miners were given a limited area of 100 hectares. Since they operate open cast mines, they do not have enough space to dump rejects and many discarded it outside their lease areas. Some of the dumps are in private properties, some have encroached on government land and there are many whose ownership is unclear. Since there is a market for this kind of ore, some people are now stealing from these dumps.
The government now wants royalty from this ore and has served notices to all who have claimed such dumps though the ownership is unclear. They have to file their claims before the mining department and the government will then take a decision, sources said.
http://timesofindia.indiatimes.com/city/goa/Govt-joins-rush-to-make-money-from-ore-reject/articleshow/6161231.cms
