goa illegal mining

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Importance of iron orey Elemental Iron (Fe) is ranked fourth in abundance in the earth's crust

and is the major constituent of the Earth's core.

y Iron accounts for approximately 95% of all metals used by modern

industrial society.y Metallic iron is most commonly produced from the smelting of iron ore

to produce pig iron.

y Steel is a processed form of pig iron



Importance of iron orey Iron and steel produced from iron ore are essential for

developing infrastructure.

y Contributes to India exports, which in turn helps inimproving CAD( current account deficit).

y Iron and steel are also used in manufacturing utensils ,electric equipments and other household articles.



Sourcing- Indian Iron Ore-Reserves & Mine

Locations (Hematite Ore Reserves)

Source: WSI (In Million Tonnes)

STATE RESERVESREMAINING

RESOURCESTOTAL RESOURCES

ALL INDIA TOTAL 7004 7626 14630

ANDHRA PRADESH 40 123 163

CHHATTISGARH 761 1,970 2,731

GOA 459 254 713

MADHYA PRADESH 34 171 205

MAHARASTRA 14 251 265

ORISSA 2,252 2,509 4,761

OTHER STATES 11 70 81

JHARKHAND 2,494 1,542 4,036

KARNATAKA 940 736 1,676



Sourcing- Indian Iron Ore- Port Network



GOA



Goa Iron orey Goas infrastructure better than other exporting

regions of the country

y Network of rivers that connect the mines with thenatural port provide a cost effective and efficientmechanism to export.

y The major players in the Goan iron industry are Sesa

Goa, Chowgules, Salgaocars, Dempos, Fomento andthe Timblos.



Chinas Influencey India is the third largest exporter of iron ore to China

y Iron ore constitutes 53% of total Indian exports to Chinaand 16% of Chinese iron ore demand

y China requires over 700mt of iron ore to achieve steelproduction target of 600mt.

y No takers for Goas low grade iron ore in Indian steelindustry.

yFrom 2005 China started buying this low grade ore as it hadthe technology to blend it with high grade ore from Australia and use it for producing iron and steel. This led toexcessive and illegal mining



Mining Problemy Mining used to take place in Goa since 6 decades. Japan

and South Korea used the high grade ore

y

For 1 mt of high grade iron ore 3 mt of ore had to berejected, this was the low grade ore. This used to bedumped.



Low cost



Environmental hazard: Goas 750

mt of iron ore dumps Iron ore mining began in Goain the 1950s. The debris hasmostly been dumped outside

the mines as there is shortage of spacemines are dug close toone another in the hilly terrain.Many mine owners have nottaken adequate care of thedumps, which need to be

stabilized scientificallythey should be fenced, covered withsome top soil, irrigated andplanted with vegetation toprevent erosion.



Impact on environmenty Deforestation

y Land degradation

y Ground water pollutiony Surface water pollution

y Dust pollution

y Damage to beaches



Impact on Peopley Dry wells

y Respiratory diseases

y Water diseases

y Adverse effect on farmlands and plantation

y Damage to houses due to mining blasts.



Importance of mining for Goay V ital Statistics:

y Source: Goa officials, Goa Mineral ore Exporters

AssociationImportant facts Figures

Annual revenue from tourism Rs.950-1000 crores

Annual revenue from mining Rs.980 croresEmployment in mining 75000 people

Approximate no. of leases 95

Iron ore exported to China, Japan, South Korea



Sesa Goa: Major player in Goa iron

ore mining.



Importance of iron ore mining for

Sesa Goa



Donation or bribe?

y Vedanta's Resources plc's current annual report (2011, page 79) states the

Board¶s policy as ³that neither Vedanta nor any of its subsidiary companies

may, under any circumstances, make donations or contributions to political

organizations within the UK or EU´.

y The report then goes on to announce that the ³Group made politicaldonations in India of US$0.02 million during FY 2011 (2010; US$3.66

million), either through a trust or directly in respect of the Indian general

election. The Board believes this will encourage and strengthen the

democratic process in India´ (sic).

yBJP, Congress, NCP, MGP, SGF, Shiv Sena took political donationsfrom Sesa Goa- Goa Chronicle



Law provisiony This statement appears to violate the intent of India¶s

Foreign Contribution Regulation Act of 1976 which

states clearly (Chapter 11 page 3) that: ³No foreigncontribution shall be accepted by any candidate for

election´, and which was amended ± and tightened ±

on May 1 this year, so as to place ³any payment of a

political nature´ in the category ³prohibited to acceptforeign contributions´.



Recommendations to curb illegal

mining in goay Corruption in the mining sector has largely been due to extraction of

ore in volumes that are greater than the permissible volumes. We needto build an information system which will monitor the movement of

ore from the mines to the ports or across our border.y We need to have a central repository of data that would include

following data:-i. List of mines (Operational & Non-Operational mines).

ii.Minor & Major mineral lease holders.

yInstallation of R FID tag on all trucks with a unique serial number fore.g. a combination of lease and truck registration number.

RFID- Radio Frequency Identification .

goa illegal mining

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