PANAJI: The Goa cabinet on Wednesday cleared a policy to permit mining companies to export low-grade iron ore that was extracted during the mining boom but dumped on public and private land because it was considered to be of little value, chief minister Pramod Sawant said on Wednesday.
Sawant said the cabinet decision will pave the way for the resumption of mining activity that has been shuttered since 2018 after the Supreme Court deemed Goa’s mining lease renewals to be illegal and cancelled them.
The ruling Bharatiya Janata Party (BJP) government’s decision comes against the backdrop of opposition parties such as the Congress, and the Aam Aadmi Party (AAP) pledging to revive the state’s mining sector, which contributed about 15-16% to Goa’s GDP in 2011-12, but now accounts for just 2%, if they come to power.
Goa has several mining dumps scattered around the countryside, essentially comprising waste earth and rock covering a mineral deposit that was rejected by miners who, in the past were only interested in the higher-grade ore located deeper underneath the opencast pits. These dumps are located on public and private.
Sawant said an estimated 10 to 20 million metric tonnes of low-grade iron ore was lying at different locations outside the mining leases, and could sustain mining activity in Goa for the next four to five years.
{{/usCountry}}Sawant said an estimated 10 to 20 million metric tonnes of low-grade iron ore was lying at different locations outside the mining leases, and could sustain mining activity in Goa for the next four to five years.
{{/usCountry}}“The state government has formulated a policy for regularisation of mining dumps on government and private land and related issues. Those who were valid lessees and who had paid the money to the government (as a penalty for illegally dumping on government land), will be allowed to export,” Sawant said.
Back in 2013 the Goa government amended the Land Revenue Code to regularise iron ore dumps at locations outside the mines by paying a penalty. A total of ₹200 crore was collected back then.
Sawant said those who paid the penalty will be allowed to export the ore under the new policy after paying royalty to the government and getting necessary approvals from authorities including the Indian Bureau of Mines, the body mandated to inspects mines to ensure regulations are followed.
The government will take over mining dumps where the penalty wasn’t paid and auction the ore.
The chief minister said the Centre’s policy allows for disposal of “overburden or waste rock mineral below the threshold value and which is generated during the course of mining or beneficiation of minerals or any minor mineral extracted along with the mineral for which the lease is granted.”