New Delhi, September 14, 2025: The Goa Mineral Ore Exporters’ Association (GMOEA), representing key stakeholders in the Goan mining sector for more than 60 years, has expressed deep concerns regarding recent speculation on the possible extension of export duties to low-grade iron ore (below 58% Fe).
In a formal communication, the Association urged the Government of India to reconsider any such move, highlighting that it could severely disrupt mining operations in Goa, where iron ore is predominantly of low grade. Given the region’s unique mineral profile and the lack of domestic demand for such ore, GMOEA emphasized that imposing export duties would not only jeopardize livelihoods and regional economic activity but also lead to stockpiling and wastage of a valuable natural resource.
The representation to the government by GMOEA comes in response to recent media reports suggesting the possible extension of export duties to low-grade iron ores (below 58% Fe).
These reports, stemming from deliberations held during the high-level stakeholders’ meeting convened on 26th August 2025, focused on introducing reforms to enhance iron ore and steel production in India. While the intent of the meeting was to address supply chain bottlenecks and support the steel sector and is laudable, GMOEA emphasized the need to avoid unintended consequences for regions with distinct mineral profiles. The meeting was co-chaired by the Minister of Commerce and Industry, the Minister of Coal and Mines, and the Minister of Environment, Forest, and Climate Change.
GMOEA also noted with appreciation the formation of the Advisory Committee, constituted on 2nd September 2025, to examine sectoral challenges with urgency and seriousness. However, Item E of the Committee’s Terms of Reference, which reportedly considers the rationalization of export policies, has sparked concerns that the export duty regime may be extended even to low-grade iron ore.
Goan iron ore, being predominantly low-grade, is largely unsuitable for domestic steelmaking, where higher-grade ore from eastern India or Bellary is preferred due to better cost efficiency. Its use in steel production raises costs, especially due to higher consumption of imported coking coal. Additional logistics costs from Goa further reduce its competitiveness, even for exports.
Even local pig iron units mostly depend on imported or non-Goan ore. As a result, Goan iron ore has historically been export-oriented, with limited domestic demand. So extending export duties to Goa would offer minimal national benefit while imposing significant hardship on the state’s mining sector.
If an export duty is imposed, Goa could face a revenue loss of over ₹800 crore annually at current production levels from just three operational mines. With more mines set to commence, this loss will multiply, discouraging participation in upcoming auctions.
Avoiding such a duty will safeguard livelihoods, sustain mining viability, and uphold fair trade practices in a sector that remains in a fragile recovery phase. Mining in Goa has only recently resumed under the auction regime. Of 12 auctioned blocks, 3 are operational, with more expected soon. Investors have made significant commitments toward compliance, employment, and logistics. A major steel company’s participation in auctions affirms the process’s credibility.
According to the Ministry of Mines Annual Report 2025, India is 100 percent self-sufficient in iron ore, with no shortage to meet its steel production goals.
Also, due to minimal domestic demand for low-grade ore, mine-head stocks have risen from 126 million tonnes in 2020–21 to an estimated 180 million tonnes in 2024–25, which has also become an environmental concern.
At this critical phase, introducing an export duty risks disrupting the policy environment, affecting project viability, future bidding, state revenues, and ongoing operations.
