Representative image | Photo Credit: Ievgen Postovyk
The Goa Mineral Ore Exporters’ Association (GMOEA) expressed serious concerns on Sunday regarding the speculation surrounding the potential extension of export duties on low-grade iron ore.
In a formal petition to the central government, the GMOEA requested a reassessment of this possibility, arguing that such a move could drastically impact mining activities in Goa, where low-grade iron ore predominates.
Given the region’s specific mineral characteristics and the lack of domestic demand for this type of ore, the GMOEA asserted that imposing export duties would not only threaten local livelihoods and economic stability but also result in stockpiling and the wastage of a vital natural resource.
This representation by the GMOEA, which has been representing key stakeholders in Goa’s mining industry for over six decades, follows recent media speculation indicating potential export duties for low-grade iron ores (below 58% Fe).
The discussions leading to these reports took place during a high-level meeting with stakeholders on August 26, aimed at introducing necessary reforms to improve India’s iron ore and steel production.
While the meeting’s objective of addressing supply chain issues and bolstering the steel sector is commendable, the GMOEA emphasized the necessity of avoiding unintended repercussions for regions with unique mineral profiles.
The GMOEA also welcomed the recent formation of an Advisory Committee by the central government on September 2, tasked with addressing sector challenges promptly and seriously.
However, the association flagged concerns regarding Item E of the committee’s Terms of Reference, which may include the rationalization of export policies, potentially extending the export duty regime to low-grade iron ore, they warned.
Since Goan iron ore is predominantly low-grade, it is often unsuitable for domestic steel production, where higher-grade ores from eastern India or Bellary are preferred due to cost efficiency. Using low-grade ore in steel making increases costs, particularly due to the higher consumption of imported coking coal.
Additionally, increased logistics costs from Goa further compromise its competitiveness, even in foreign markets, the association argued.
Furthermore, local pig iron manufacturers primarily rely on imported or non-Goan iron ore.
Consequently, Goan iron ore has been historically export-oriented, facing limited domestic demand. Thus, extending export duties on Goa would yield minimal national advantages while inflicting substantial hardships on the state’s mining sector, they contended.
Impact
If the export duty is implemented, Goa could experience an annual revenue loss exceeding ₹800 crore at current production levels from just three operational mines, the association calculated.
With more mines expected to begin operations, the loss would compound, potentially deterring participation in future auctions, the association claimed.
Mine operators argued that avoiding such a duty will protect livelihoods, maintain mining prospects, and uphold fair trade practices in a sector that is still recovering.
The association highlighted that mining in Goa has only recently resumed under the auction system.
Out of 12 auctioned blocks, three are currently operational, with additional operations anticipated soon. Investors have made substantial commitments toward compliance, employment, and logistics. Notably, a major steel company’s engagement in auctions reinforces the credibility of this process, they stated.
According to the Mining Ministry’s Annual Report for 2025, India is entirely self-sufficient in iron ore, with sufficient reserves to meet its steel production demands.
Additionally, due to negligible domestic demand for low-grade ore, mine-head stocks have surged from 126 million tonnes in 2020-21 to an estimated 180 million tonnes by 2024-25, raising environmental concerns.
At this critical juncture, enforcing an export duty risks disrupting the policy landscape, affecting project viability, future auctions, state revenues, and current operations, the GMOEA cautioned.
Published on September 14, 2025
