Supreme Court yesterday (7th Feb’18) in its verdict canceled the second renewal of 88 mines lease granted by the state government in Goa and operations from 15th Mar’18. The court has further instructed for fresh leases and that will be issued only after obtaining an environment clearance. Court has given its judgment while hearing a case filed by NGO Goa Foundation.
With this verdict, iron ore export from Goa is expected to decrease and Chinese steel makers might shift to Iran for iron ore procurement. Iran, one of the largest iron ore exporter of world has exported around 21 MnT of iron ore to China in CY’17, registered a growth of 34% Y-o-Y.
In CY’16, China resumed iron ore import from Goa India, which affected Iran iron ore export. As the share of iron ore export from Goa shoot up drastically from 0.21% in CY’15 to 1.51% in CY’16, leaving a limited scope for Iran iron ore exporters. And further the share of Goa iron ore export to China reached 2% in CY’17 and on other hand Iran’s share reached 1.82%.
Share of iron ore exports from Iran to China have come down on yearly basis. In 2013, Iran exported nearly 23.5 MnT iron ore occupying 2.5% share of seaborne iron ore market imported to China. Now this share has reduced to 1%. Reason behind fall in share is rise in iron ore export volumes from other countries – Mr Keyvan Jafari Tehrani.
Past scenario of Goa iron ore exports –
Till 2011, India was the third largest exporter of Iron ore. Goa contributes 70% of iron ore export and remaining 30% exports made from other states. But, due to imposition of mining ban by government, mining was halted in 2012. With SC lifting iron ore ban in Goa after almost two years and resumption of mining operations in Goa, iron ore exports from Goa also resumed.
In order to boost exports, Indian government had abolished export duty on ore (below 58%) to nil. This had granted a relief to Indian iron ore exporters. As, Goa mainly exports low grade ore to China, exports geared up.
Indian iron ore exports have seen fourfold increase in FY1
7. India exported 24.35 MnT material in FY17 compared with 6.04 MnT in FY16 which is 303% higher Y-o-Y with 18.31 MnT additional amount of concentrate. In FY’17, exports from Goa were registered 278% higher at 14.56 MnT against 3.86 MnT in FY’16.
Source Steel Mint powered by Keyvan Jafari Tehrani