Mining stakeholders in Goa have cautioned the Union government against imposing export duties on low-grade iron ore, warning that such a move could seriously disrupt mining operations in the state, which is still in the early stages of recovery after years of disruption.
The Goa Mineral Ore Exporters’ Association (GMOEA) has written to the Centre expressing concern over reports that an export duty may be levied on iron ore with iron content below around 58 per cent. According to the association, the bulk of iron ore produced in Goa falls into the low-grade category and is largely unsuitable for direct use by domestic steelmakers, making exports critical for the sector’s viability.
Industry representatives argue that imposing an export levy at this stage would undermine the economics of recently auctioned mines that have just begun operations. They say the additional cost burden could render several projects unviable, leading to production cuts, stockpiling of ore and possible suspension of mining activity. The association has also warned that such a policy could deter fresh investment at a time when confidence is slowly returning to Goa’s mining sector.
Miners have pointed out that diverting low-grade iron ore to the domestic market is not a practical alternative. Many Indian steel plants are configured to use higher-grade ore, while beneficiation capacity for upgrading low-grade material remains limited. As a result, exporters argue that discouraging shipments through duties would not necessarily translate into higher domestic consumption but could instead lead to unsold inventories and operational stress.
The issue also carries broader economic implications for Goa. Mining contributes to state revenues through royalties, supports employment across extraction, transportation and port operations, and underpins ancillary industries. Stakeholders have warned that any sharp decline in exports could have a cascading impact on local livelihoods and government revenues.
Export duties on iron ore are not new in India. Similar measures were introduced in the past, including in 2022, but were later rolled back following strong industry opposition and concerns over their impact on mining activity. Market participants say the renewed discussion reflects an ongoing policy balancing act between conserving raw materials for domestic steelmakers and sustaining export-dependent mining regions such as Goa.
While no formal notification has been issued so far, mining bodies are seeking clarity from the government and urging it to reconsider any proposal to tax low-grade ore exports. They have stressed that policy stability is essential for the sector’s recovery and that any effort to encourage domestic beneficiation should be supported by incentives rather than punitive duties.
For now, the proposed export duty remains under discussion, but miners warn that a decision to proceed without addressing structural constraints could stall Goa’s mining revival just as it begins to regain momentum.