The Goa Mineral Ore Exporters’ Association (GMOEA) has urged the central government not to impose export duties on low-grade iron ore, warning that such a move could severely disrupt mining operations in the state.

In a letter to Piyush Goyal, Secretary to the Ministry of Mines, the association expressed concern over reports suggesting the introduction of export duties on iron ore with less than 58 per cent iron content. GMOEA argued that Goa’s iron ore is predominantly low grade and export-oriented due to limited domestic demand, making any additional fiscal burden particularly damaging.

GMOEA Joint Secretary Glenn Kalavampara said Goan iron ore, characterised by lower grades and higher impurities, has historically depended on exports because of its limited suitability for domestic steelmaking. He noted that frequent fiscal interventions, such as export duties on low-grade ore, create uncertainty, constrain market access and reduce price realisation, ultimately affecting government revenues and the broader mining ecosystem in the Konkan region.

According to the association, the average grade of Goan iron ore is around 54 per cent iron content, with virtually all production below 58 per cent. Even pig iron and pellet plants in Goa rely on higher-grade ore sourced from outside the state or imports. Production in the state is largely fines-based and seasonal, influenced by the monsoon.

Kalavampara also highlighted that the central government recently approved a special assistance package of Rs 4 billion for Goa to support the commencement of production from auctioned mineral leases. He said such support is welcome and should help address industry bottlenecks.

The association noted that the Ministry of Mines has been working with state governments to resolve issues related to the operationalisation of auctioned mines, while domestic iron ore production has continued to grow steadily. It added that faster and more streamlined statutory clearances would significantly improve project timelines and outcomes.

Mining activity in Goa has resumed gradually following recent auctions. Of the 12 auctioned blocks, five have commenced production, with several more expected to begin operations within the current financial year. The state government also plans to auction additional blocks before the end of the fiscal year.

GMOEA warned that imposing additional levies at this critical stage could undermine project viability, deter competitive bidding, reduce state revenues and jeopardise ongoing mining operations.