Threat of closure still not there for Goa bauxite miners

Bauxite mining in Goa is free of uncertainties related to possible closure that is looming large over the bauxite mines in Maharashtra, assured sources in the Indian mines ministry. According to them, bauxite mines in the coastal state are located at a safe distance away from the ecologically sensitive areas of Western Ghats that lines the state of Maharashtra.

Goa contributes a modest percentage to India’s annual bauxite production, through the process is erratic. In the current financial year, the output till date totalled at 47,500 tonnes against 58,600 tonnes of 2015-16. Bauxite production took a hit in 2014-15 when it slumped to 26,850 tonnes before reversing and touching a peak at 1.0 lakh tonne.



Currently there is only one leaseholder in the Goa bauxite mining belt- the Gosalia Group in Margao. The miner has an EC limit of 1 lakh tonne and sells bauxite to the domestic cement companies as well as to international buyers. Indian government gets to earn modest royalty from the mineral as it is classified as major.

As per recent reports, many bauxite mining companies are closing their operations in the Western Ghats belt as they are being hit badly by multiple socio-economic factors and escalating logistics cost. Dapoli and Shriwardhan in Maharashtra are already preparing to wind up their businesses after the Western Ghats got heritage status.

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There have been spurious disturbances in the region earlier, but the companies have somehow managed to deal with those incidents. Compliance related issues have also been negated over the years with efficiency; but the situation now is worse, said Shiv Kanodia, founder president of Bhartiya Investors’ Make In India Forum, a group voicing the cause of mining firms.

Bauxite mining in Goa is negligible and is till now not affected by issues such as those stated above. The major producing states in the country are Odisha, Chhattisgarh, Jharkhand, and Gujarat.