Finance

MINING IN GOA

Overview

Mining has been a very important element in the economic history of modern Goa and a significantforeign exchange earner for the state. Recently, it has been designated as the industry at par with tourism. It has provided the trigger to boost economy of the mining talukas. Certain natural factors like the presence of coastline, a very good natural harbour at Marmugao and a number of navigable perennial rivers have promoted the economic exploitation of mineral deposits. Transport of ores by barges is the cheapest optionas compared to road and rail transport.Goa is a major iron ore exporting state and over 60% of Country's iron ore export is from Goa. In terms of foreign exchange earnings it amounts to nearly Rs.1000 crore per annum. Mining in Goa is done by open cast method which necessitates theremoval of overburden overlying the iron ore formations. On an average about 2.5 to 3 tones of mining waste has to be excabvated so as to produce a tone of iron ore. The average annual production of iron ore is about 15 to 16 million tones, in the process removal of which about 40 to50 million of mining waste is generated. Such a huge quantity of mining waste creates a problem for its storage thereby causing severe environmental pollution.

Goa's economy after mning ban

Goa’s economy grew by over 8 percent, above the national average of around 6 percent, in 2011-2012, the year before the mining ban went into effect. Those who keep tabs on the Goan economy – bankers, economists, government officers and others – expect the figure for 2012-2013 to come in at around 3 percent, below the national growth rate of 5 percentand a cause for concern for all those who see economic growth as the state’s best hope for advancement of virtually every kind.While many have gone back to farming, there’s the case of Kantola Gauns from Bicholim who has gone back to being a motorcycle pilot. Others have started carrying construction material and other small-time jobs to...