The Party Is Over, Goa

The Supreme Court has lifted the ban on iron ore mining in Goa. But a cocktail of low demand, crashing prices, and high taxes has pushed the industry off-kilter.

- Ashish Gupta

Once upon a time, not so long ago, mining in Goa was a great business to be in. The golden age of mining began in January 2006, with a boom in export prices; exporters were making as much as $73.4 (Rs 4,637) per tonne. Global prices touched a record $187.1 per tonne in February 2011. The industry produced 45 million tonnes of ore annually. This upswing coincided with the boom in commodities fuelled by China’s astonishing growth.

But like all good things, this came to an abrupt end in September 2012, when the Supreme Court imposed a ban on iron ore mining in Goa after a judicial panel exposed a scam involving mining companies, bureaucrats, and politicians. This order marked the culmination of a campaign by environmental activists led by the Goa Foundation, which alleged that all 90 mines were illegal because they did not comply with wildlife conservation rules. (Mining is carried on in the area between the coast and the Western Ghats, protected by a series of contiguous national parks and wildlife sanctuaries.)

Before the ban, iron ore mining used to contribute around 25% to the state’s GDP. Around 150,000 people (35% of the state’s employable population) benefited from the mining industry ecosystem. For example, around 20,000 trucks owned by contractors, often employing drivers from outside the state, transported the ore to jetties. The ore was then loaded on 375 barges and taken to the ships at the Mormugao harbour, and from there, sent to China. Today several empty barges can be seen at the harbour.