Only 8ha encroached as per state government survey: Shivanand

STOI: Are you hopeful that the government will restart mining soon?Shivanand Salgaocar:
Mining has to restart because unemployment is rampant, the loss of government revenues, both for the state and centre is very high. Besides, direct revenues, even indirect revenues like VAT, service taxes, etc, which the government collects have been seriously affected.The stoppage of mining activities has had disastrous effect on all mining-dependent people, such as truck operators, machinery operators, barge owners, small-time traders, etc. The effects of the mining ban is felt not only in the mining belts but in all major towns like Ponda, Vasco, Mapusa, Bicholim, and Sakhali and all the surrounding villages. Even merchants and small business houses in Panaji seem to have been affected by the mining ban. Goans fortunately have a support system which has helped sustain mining-dependent people over the past 26 months, but this can’t go on forever. Their patience is getting exhausted and the government I believe is fully aware of this. Based on steps taken by the government in the past few weeks, I am hopeful that mining will start in the near future.
But have you met chief minister Manohar Parrikar recently to reiterate you demands?
Every time we meet him, we request him to ensure that legal mining starts. I think he has taken the first step by formulating the mining lease renewal policy and therefore I am hopeful that leases will be renewed at the earliest so that subsequent processes can be initiated for the commencement of mining operations in due course of time.
Have you also met Prime Minister Narendra Modi to press your demand for the resumption of mining?
No. I don’t really think we need to bother the Prime Minister because the action and major part of the responsibility clearly lies with the state government.
So can you give a date for resumption of mining in Goa?
Hopefully by mid-November we should have some of the leases renewed. If the leases are renewed by November 15, actual mining and fresh excavation may start by April 2015 at the earliest. In other words, most of this season will also be a write-off.
The mining companies have been accused of being overzealous and that is why the Supreme Court stepped in…
Mining in Goa has existed for over 60 years and if we had not taken care of the environment, the community, and followed sustainable mining practices, it would not have been possible to have carried on for so long. What happened in the recent past is unfortunate. The mining companies have been hanged before giving them a chance to defend themselves. Moreover, erroneous reports have been relied upon in what has largely become a public trial and as a result the mining industry has been unfairly, unjustly and wrongly maligned. For example, the Shah Commission that has been frequently referred to says that 35,000crore worth of iron ore has been illegally mined via encroachment on over 500 hectares of land. The government of Goa did a survey and found that the actual figure of encroached mining land was just about 8 hectares. Despite these findings, the media as well as the NGOs continue to refer to the figure of 35,000crore and mislead the public. This must stop. Today, we’re in a world where we, who have been around for decades and have mined responsibly, scientifically and systematically, have been given a bad name because of the misdeeds of a few black sheep who have fled the scene. Instead of going after them, the anti-mining lobby is pushing for a stop to mining altogether, which would be devastating to the state and the people of Goa.
Do you feel the sudden boom in requirement by China, in the mid-2000s, brought about by their own industrialization, caused mining companies in Goa to probably do certain wrong things?
The China boom certainly contributed to the situation at hand but one cannot pass on the blame. The rapid growth in China led to a spike in global iron ore prices and as a result, iron ore mining became very lucrative. The resulting greed that overtook some miners as well as traders is one of the primary reasons for the current scenario. It led to indiscriminate mining being carried out by some and as a result the industry’s image was tarnished. Also, there have been gross violations by some who took the law into their own hands and indulged in practices which are unconscionable. Parties also expanded beyond what the terrain could bear in terms of its carrying capacity for the movement of ore.
So, you are saying, mining was all right before that?
Before the China boom, mining was never very glamorous or lucrative, and we used to have to negotiate for days to get just a few cents price increase. Many times the international prices were so low that we survived only because of the devaluation of the rupee. The players active prior to the China boom have always been in it for the long haul and I don’t think any of these long-term players would have engaged in the malpractices that became rampant after the boom. These companies had installed infrastructure to ensure sustained mining, like beneficiation plants, screening plants, riverside jetties, construction and widening of roads, etc. Even the first four-lane bridge in Goa—the Usgao bridge—was constructed by some of the more responsible mining companies. Many of these companies have maintained the full compliment of their permanent employees with full wages and bonuses despite closure of all mining activities for the last 26 months and have continued with their CSR activities in the mining areas as they have a strong commitment to long-term sustainable mining in Goa. Regrettably the media does not deem it necessary to highlight these aspects because it’s not ‘sensational’.
Do you regret the mistakes done by the mining industry?
The actions of a few elements, and not the industry as a whole, are regrettable. There are certain fly-by-night non-traditional mining companies who went beyond the law to exploit the situation to their advantage with no consideration for the community or the environment or long-term mining. A lot could have been avoided if laws were strictly enforced to ensure compliance. At the same time you cannot blame the government entirely because self-regulation is also required.
Are you looking at other business opportunities other than mining, especially since mining may not be as attractive as it was before?
At this point of time my focus is on getting mining restarted because we have been maintaining our entire workforce with absolutely no retrenchments whatsoever. All our workers are being paid 100% wages, including bonuses. Even the majority of our contract workers are being paid 50% wages. Anyone can tell you that a business model with zero revenue and almost 100% costs is not at all sustainable and will exert tremendous pressure on a company. While this certainly has been the case for us, we continue to pay our workers because we feel we have a responsibility to them and to the community at large.
If Goa Foundation goes back to the Supreme Court to appeal against the state government decision to renew the leases, do you think you will be stuck?
I don't think this time around there will be a blanket, ex-parte stay. The Supreme Court in its judgment, which has also been interpreted by the high court of Bombay at Goa, has clearly empowered the state government to renew the leases as per the MMRD Act and Rules. The renewals are always subject to judicial review. If the renewals are challenged and need to be examined by the courts, they can certainly do so, but there is no need to paralyze an industry and a state while carrying out the judicial review. A patient does not need to be comatose when being examined.