Five days after the scheduled start of the new mining season on October 1, iron more mining operations are yet to commence in the western Indian state of Goa, two miners said on Thursday, October 5.
The miners said that no miners in the region have commenced operations nor completed pre-mining preparations for a combination of reasons.
Officially, most iron ore mine owners in Goa state that the monsoon rains have yet to abate and the delayed retreat of the rain-bearing monsoon winds have forced miners not to commence production, the two miners said.
However, all miners in the region cited the fall in international prices of iron ore and the lack of any buying interest for low grade iron ore fines as the primary unofficial reason for not commencing production, the miners added.
With prices of low grade iron ore fines, of Fe content of 58 percent and lower, falling below $45/mt CFR China, Goa miners fear that any resumption of operations now will only aggravate stockpiles, the miners said.
It has also been pointed out that, with 40 percent of total export realizations going to payments of taxes and levies, current offer levels does not give any positive margins to miners and hence their reluctance to commence mining operations even almost a week after the start of the new mining season in Goa.