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This month's Goanet operations sponsored by Mrs. Daisy Faleiro If you would like to sponsor Goanet's operations contact: Herman Carneiro - [EMAIL PROTECTED] ------------------------------------------------------------------------ Goa mine-owners get shock from Rs 300 per tonne export duty on ironore Pamela D'Mello [EMAIL PROTECTED] Panaji, Feb 28: Iron ore mineral ore exporters in Goa have reacted sharply to the Rs 300 per metric tonne export duty cess levied in the Union Budget today. "There is no way that Goa can bear this cost. The industry will simply have to close down," said S Sridhar, secretary of the Goa Mineral Ore Exporters Association. Goa's 100% export oriented iron ore production was until overtaken by tourism over the past decade, the mainstay of the local economy. It still claims to employ an estimated 35,000 directly and indirectly on 85 mining leases currently operational in interior Goa's open cast mines. The GMOEA says it will ask the state govenrment to back its demands for a roll back and take a delegation to Prime Minister Manmohan Singh. The export duty will begin being levied tommorrow, the GMOEA was informed by Customs officials, and it applies to all forms of iron ore. Initially the GMOEA was hoping the duty would be applicable only to higher grade iron ore, but "all forms of iron ore" makes it very clear, Mr Sridhar said. Thirty six million tonnes of ferrous ore was shipped out in 2005 from Goa, accounting for 40% of India's 90 million tonnes exported that year. Greater demand from China, Japan, Korea and other countries have seen iron ore prices climb from $15 per metric tonne to $ 35.68 per tonne currently. Production in Goa has simultaneously climbed from 15 million tonnes annually to 36 million tonnes making it a Rs 4000 crore industry here. "If the export duty is continued, Goa alone will have to pay Rs 750 crore a year, while the centre will mop up Rs 2700 crore totally. Goa cannot bear this cost," complains Mr Sridhar. Iron ore exporters have been in an intensifying tug of war with the local steel industry, who say exports would deplete available stocks, leaving nothiing for India's steel production. In end September, industry here backed by the state govenrment had reacted to Assocham's (the Associated Chambers of Commerce and Industry) suggestion for a Rs 500 per metric tonne export cess. Mineral exporters charge the indigenous steel industry with being interested in reduced prices to the international market price of $35 a tonne. Goan ore expoerters argue that locally exported ore is low grade and is consequentlly blended with higer grade ore. "Indian steel industry in any case does not have the technology to make steel from fines and low grade ore," says Mr Sridhar. Local producers have grown an export market for the past fifty years, since the post World War II Japanese reconstruction. Presidents of at least three of the major firms, Dempos, Salgaoncars and Chowgules are in Japan finalising contracts today and were not available for comment.(ends) -- Pamela D'Mello Cell 9850 461649 http://pameladmello.goa-india.org