Today, the Supreme Court of India has decided that the mining operations in the Goa state will continue after a ban was imposed 18 months ago due to environmental violations. Bloomberg noted that mining products from Goa then accounted for around half of India's exports.
A three-judge panel of the Supreme Court headed by Justice AK Patnaik said that with the lifting of the ban, Goa could produce up to 20 million metric tons annually following the renewal of the miners' leases with the state government. Moreover, a court-appointed panel will be issuing an environmental impact report in the next six months to provide an assessment on whether the output limit the judge panel has imposed should be increased.
Bloomberg said the revival of mining in the Indian state could increase supplies of steelmaking raw material in the world market. China, said Bloomberg, will most definitely benefit from the lifting of the ban as the country is India's top buyer.
Although the ban on mining in Goa has been lifted mining in the state after 2007 is still illegal, the court clarified. Lawyer CU Singh for the Goa miners' association had said in New Delhi that the leases had expired last year and mines that were operating had been awaiting for renewal.
Mumbai-based analyst Giriraj Daga at Nirmal Bang Equities Pvt said that despite the lifting of the mining ban, he is not holding on hope that mining operations in Goa would start soon. He told Bloomberg, "Despite lifting of the ban, mining may not start before October. The first hurdle that the miners need to cross is getting a valid mining lease from the state government."
The lifting of the ban did not come in with several provisions. The Supreme Court also ordered all miners to allot 10% of their sales for welfare programs, the news agency said. The court also has tasked the state government to prepare a report on how it plans to use the proceeds. Moreover, the local government is also tasked to seize all ore lying at several locations in Goa ahead the court-appointed panel's suggestions on how to utilize the commodity.
