Foreigners creating Goa mining trouble?

We do not know if there is any foreign funding behind all the activism against Goan mining,Sesa Goa said.

A Goa-headquartered mining firm has apprehended that foreign funding is behind the activism against the state8217;s iron ore mining industry,which is facing the threat of a total ban on exports.

8220;We do not know if there is any foreign funding behind all the activism against Goan mining,8221; P K Mukherjee,the Managing Director of Sesa Goa Limited,a subsidiary of Vedanta Resources,said in a statement issued here.

When the country wants to invite huge investment in the mining sector through various provisions in the proposed MMRD Act,such negative painting of all miners with the same brush may do more harm than good in the medium to long-term,8221; he said without elaborating further on the issue.

The iron ore trade in the state is going through a tough phase in the wake of an enquiry into illegal mining by the Justice M B Shah Commission,which is expected to give its report on December 1.

Mukherjee said it is imperative to protect the business interest of all players as Goan miners will lose markets in Japan,Korea and Europe,besides China,established over years,if the ban is perpetuated. He said there is no denial of the fact there are certain illegalities in the mining sector and exports from the state in particular.

8220;In fact,the industry itself wants the black sheep to be identified and brought to justice,8221; Mukherjee added. Goa exports 54 million metric tonnes of ore annually,the maximum exported by any state in the country. Mukherjee said there is an urgent need to strengthen the monitoring apparatus under extant regulations for all activities related to mining,transportation and exports. 8220;Once the proper system and accountability for monitoring are in place,all offenders will be automatically identified and eradicated,8221; he said,adding that a blanket ban on exports is not a solution to the issue.

8220;It will lead to destabilisation of Goa8217;s economic apparatus. These social and economic dimensions need to be addressed before arriving at any decision about the future of this industry,8221; he added.

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The Goa Mineral Ore Exporters8217; Association GMOEA,a representative body of iron ore mining and export companies of Goa,expressed concern over a possible ban on iron ore exports from the state,as reported in certain sections of the media. GMOEA President Shivanand Salgaocar said the Goan mining industry contributes approximately 35 per cent of the state8217;s GDP.

Mining as an industry attracts Rs 17,000 crore to the state in the form of foreign exchange and brings Rs 6,000 crore in direct revenues to the state and the central government.

Close to 75,000 people in the state depend on mining and allied activities to earn their daily bread and butter. Any move to prohibit iron ore exports from Goa will not only be detrimental to the interest of these people,but will also severely hit the 18,000 trucks and 360 barge owners connected with this industry,he said. A ban on ore exports could lead to an economic blackout in the state,Salgaocar feared.