Prime Minerals exports 72,892 t ore to China

Recently, around 72,892 tonne of iron ore fines mined in Maharashtra was exported to China from a port in Goa by Prime Minerals Exports.

Reports suggest that this is the first shipment of iron ore to China from India since a ban on mining in Goa took effect in October 2012.

In October last year, Supreme Court banned mining in Goa after allegations of illegal mining from a federal government-appointed committee. There is no ban on export of iron ore from outside the state. The iron ore in this case was mined in Maharashtra, for which royalty was paid in Maharashtra, a top official from the Goan government is quoted as saying by a media.

Goa used to export almost all its annual production of more than 50 million tonne before the ban. India used to produce about 200 million tonne a year of iron ore and exported about half of that, with China taking the bulk of its output. Karnataka and Goa were the main producing states, and mining has been restricted in both.

Last year, India could export only around 30 million tonne of ore as a clampdown on illegal mining, and exports from Karnataka, slashed both output and shipments, prompting steelmakers to operate below capacity.

Global iron ore exporters like Vale, Rio Tinto and BHP Billiton would benefit from the ban on export of ore from India as China would depend on these firms to meet its ore requirement.