The Union Mines Ministry is examining the recommendation of banning iron ore export from Goa in consultation with the Commerce ministry, an official said.
The Justice MB Shah Commission, appointed to probe allegations of illegal mining across iron ore exporting states, had in its interim report hinted at the possibility of banning iron ore export from the state.
"Ban has been one of the recommendation (of Shah Commission). We are examining it in consultation with the commerce ministry," SK Srivastava, Additional Secretary, Ministry of Mines, told reporters here last evening.
He said the Central government was aware that the state's economy is dependent on mining.
"We are aware of the fact that a lot of direct and indirect employment in the state is coming from the mining sector. So the best approach is that mining should take place in a sustainable manner," he said.
Srivastava said no specific date has been decided for the Shah Commission to submit its report.
"It is for them to decide. May be they will visit all the states and give a well considered report," he said.
The Shah Commission was expected to submit its report on December 1, which has been postponed.
"Once the report is submitted action would be initiated against the violators under respective laws. If someone has violated environmental law he would be prosecuted under that and if someone is found guilty of mining violations then he would be charged under Mines and Minerals development and Regulation (MMDR) Act," Srivastava said.
The possibility of ban on the iron ore has triggered panic in the state's iron ore rich belt.
Several thousand people had thronged the streets of Panaji in the last week of November demanding immunity to the trade.