No threat to bauxite mining in Goa

24 October 2016

Unlike Maharashtra’s bauxite mines that are facing shutdown, bauxite mining in Goa faces no threat of closure, clarified sources in the mines department.

The sources have said that bauxite mines in the state are located in the coastal belt away from the ecologically sensitive areas of Western Ghats, where all mining activities are bracing for closure.

Bauxite mining is permitted activity, adding that the operations are continuing and did not stop even during the three-year ban on iron ore mining. Goa produces modest quantity of bauxite, and the production is erratic, the sources said.

Current year’s output (till date) is 47,500 tonne compared to 58,600 tonne in 2015-16. The year 2014-15 saw a sudden slump in bauxite production to 26,850 tonne before which it had touched a peak of 1.0 lakh tonne.

There is only one leaseholder – the Gosalia Group in Margao which has an EC limit of 1 lakh tonne. Poor domestic and export market for bauxite could be the reason for the disinterest in increasing the production, the sources said.

The Gosalia Group, which has arrears to pay to the DMG, exports the mineral and also sells it domestically to cement industries.

The government earns modest royalty from bauxite and the mineral is classified as major.

Recent reports have said that various bauxite mining companies are planning to wind up their business along the Western Ghats i.e. Dapoli and Shriwardhan in Maharashtra, as several factors hit their operations adversely: mainly opposition from environment groups.

Moreover, the Western Ghats have also got heritage status. High logistic cost is another reason for closure of operations.

The companies have been into the business for more than two decades responsible for developments of unexplored mineral resources and taking Dapoli and Shriwardhan on global map. The bauxite mining has provided employment to more than 10,000 people directly and indirectly.

There have been disturbances and stringent regulatory issues which were effectively negated by the companies by adequate compliances over the years. But recent incidents in conjugation with non-committal, non-supportive approach from various quarters led to the decision for closure, said Shiv Kanodia, founder president of Bhartiya Investors’ Make In India Forum, a group that champions the cause of mining firms.

Extraction of bauxite in Goa is negligible and major producing states are Odisha, Jharkahnd, Chhattisgarh and Gujarat.

Source – Navhind