SC lifts iron ore mining ban in Goa, curbs the production at $20 million tonnes

NEW DELHI (Scrap Monster): Due to the illegal mining in Goa which leads to surplus ore, special panel for mining industry recommended to lift the 19 month old ban of iron ore mining in Goa and suggested to restrain the production at 20 million tonnes. The ban was actually imposed in the year 2012. The additional supply will form surplus iron ore in this year which will be more than the expected figure. This is because other major companies like BHP Billiton and Rio Tinto also increased their production.

Although it limits the production, it will give a strong pressure to the global price and analyst says that this 20 million dollar is not a huge amount. Owing to the Anti-pollution campaign of Beijing, the Chinese producers only prefers high quality materials which raise the question that whether they buy low grade materials from India. Over the past two years, due to the ban on production and exports in Goa and neighboring state Karnataka cuts down the India’s iron ore exports by 85 million percent.

Following the ban on mining, India dropped to 10th position from being the world's third largest exporter of iron ore before. Even though the strict regulation and bans exists, analysts are expecting a gradual recovery in exporting of Indian ore in the upcoming years.