Indian mines ministry against cap on production of minerals

Even though Justice M B Shah Commission and the environmentalists in the State have raised concern about limited iron ore resource, the Union Mines Ministry, putting to rest all such worries, has clarified that ‘mineral resources are likely to be augmented further in Goa for preserving the asset for future generation’. The iron ore rich state still has a resource balance of about 1,150 million tonne.

Ascertaining that the ore resource would be augmented, the Ministry has refused to put any cap on production of minerals solely on the basis of reserves and resources claiming that the capping would not be in the interest of growth of mining industry.

Union Mines Ministry has drafted 25 pages updated action taken report on Shah Commission’ inquiry reports taking into account the comments received from the Ministry of Coal, Department of Commerce, Department of Legal Affairs, Union Ministry of Environment and Forest, Ministry of Shipping, Ministry of Steel and Goa government.

Ministry has pointed out that earlier, exploration was upto 50 to 60 meters depth, whereas, the Goan ore, primarily vein type is deep seated. Therefore with advances in technological intervention in exploration, which is an ongoing process, iron ore resource is likely to be augmented further.

It has said that the reserve of Hematite iron ore in Goa in 1971 was 396 million tonne. As on April 1st 2010, after excavating about 500 million tonne in last 29 years, Goa still has resource balance of about 1,150 million tonne.

Ministry said that hence fixing a cap on production solely on the basis of reserves and resources proved as at the present will not be in the interest of the growth of the industry.

Shah Commission in its inquiry report had recommended that ‘for preserving non renewable assets for future generation, there is a need to bring down the production to safe guard environment, ecosystem, biodiversity and wildlife of the state’. Commission has suggested cap of 12.5 million tonne per annum. Goa government has already proposed gross capping of 45 million tonne per annum.

Supreme Court that has suspended all mining activities in Goa, has appointed 6 member capping committee to conduct micro level environment impact study and suggest annual ore production for the state.