State mining royalty jumps 807 %

PANAJI: The Goa government has collected ` 286 crore as mineral royalty from the mining industry in fiscal 2009 -2010 (March – April), against Rs 35.44 crore in fiscal 2008 – 2009, registering a whopping 807 per cent jump.

This includes warfage, port charges and port dues.
Mineral royalty, which is earned from production of ore, could be more if the reported illegal mining of ore is also taken into account, said a source wishing anonymity. The latest data with Goa Mineral Ore Exporters Association (GMOEA) and the Director of Mines shows that Goa’s ore production in 2009-2010 fiscal was 46.22 million tonnes, and 6.9 million tonnes imported from Karnataka, that brings the total export to 53.12 million tones, against 2008 – 2009 exports of 45.58 million tonnes.
Goa ore production in 2008-2009 fiscal registered 38.07 million tonnes and imported 7.51 million tonnes from Karnataka. According to a GMOEA mining source, the 10 per cent ad valorem increase in 2009 has paved the way for charging higher royalty on iron ore by mineral bearing states.
Royalty rates for different grades are set by the Indian Bureau of Mines changes regularly, said a Timblo mining source. For some grades the industry had paid ` 170 per a tone. In August 2009 to March 2010 on an average the Government had collected between ` 80 to ` 110 per tone on the 52 grade. Prior to the Centre increasing the ad valorem, the mining industry was paying ` 8 to ` 12 per tone.
Goa is a mineral rich state both in terms of reserves and production. The mining sector contributes between 6 to 7 per cent of Goa’s Gross Domestic Product (GDP). However, illegal mining is believed to be striving as six illegal mining activities have been reported, so far.