Ore transit disruption led to daily loss of Rs 2cr: Mining assn

Panaji: The continuous disruption in the transportation of iron ore extracted from Vedanta Sesa Goa's Bicholim mine block is leading to a loss of nearly Rs 2 crore daily, said the Goa Mineral Ore Exporters' Association (GMOEA) on Wednesday. GMOEA secretary Glenn Kalavampara said that the “unreasonable demands” being made by villagers have a negative financial and reputational impact.

The GMOEA said that govt is responsible for addressing the concerns since it is govt that auctioned the mining blocks at a premium.

“We are informed by Vedanta Ltd that for the past two weeks, road transportation at their Bicholim mine was halted due to certain unreasonable demands, leading to a loss of nearly Rs 2 crore daily. Further, even temporary route requests are pending. This situation does not align with the principles of ease of doing business,” Kalavampara said.

The villagers of Mathawada-Sarmanas, Pilgao, have blocked the trucks from transporting iron ore. Local farmers, including women from the ST community, said that the trucks are damaging the fields.

“Inability to transport despite obtaining all permissions is unfair to any operator, especially on traditional or dedicated routes. These delays not only harm the operator but also impact govt and economy, particularly when the sector is already reeling under challenges. We urge the authorities to swiftly resolve the stalemate,” said the GMOEA secretary.

The GMOEA said that mining leases are being auctioned by govt at a premium and thus the primary responsibility of addressing the concern is equally vested with state govt with no additional cost to the leaseholder.

Apart from high bid premiums at the auction, mining companies also pay statutory dues such as royalty, district mineral fund contributions, and other taxes.

While expressing optimism that ongoing dialogues between village groups and the mine leaseholder will lead to an amicable resolution, the GMOEA said that “practical interim solutions” are required to prevent further problems.

“We hope the concerns of the villagers and the operator are resolved quickly, practical arrangements are implemented, and instances of taking law into one’s hands are avoided in the future,” Kalavampara said.

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