The Goa government will demand a rollback of hike in royalty rates of low grade iron ore proposed by Centre, saying profit margins of mining industry have shrunken due to a steady fall in international prices since 2011.
Goa Chief Minister Manohar Parrikar on Friday said he does not favour e-auctioning of iron ore as it burdens the state government with providing logistic support to buyers, who bid for the raw material.
In a major set back for the iron ore mining industry, the Supreme Court appointed expert committee has opined that only 20 million tons of the metal ore should be allowed to be mined in Goa, as against the current extraction of 53 million tons.
The Goa government has set in motion the process to e-auction around 15 million metric tonne of iron ore currently stacked at jetties, leases, stock-yards and beneficiation plants across the state`s mining belt.
The Goa government has told the Supreme Court that 3.9 million metric tonnes iron ore out of the total 15 MMT lying in the state has been found without proper documentation, raising suspicion that it might have been extracted illegally.