Mining giants exploit Goa’s resources; threaten ecology

Iron ore from Goa is mainly exported to Asian countries like China and Japan. The last decade witnessed a heavy demand of iron ore from these countries. Subsequently new players entered the business. Also as a result of liberalization of the economy, international corporate business houses started acquiring a share of this industry. Some local mining companies have been acquired by bigger international concerns. One of the latest cases is the agreement between Sesa Goa, a Vedanta Group company and Dempo Group, one of the biggest Goan players in this field. Sesa Goa has agreed to acquire the mining assets of Dempo for Rs 1750 crore. This deal was struck last June. While announcing this deal, Vedanta Group chairman Anil Agarwal said, “The integration of Sesa and Dempo Group operations will achieve greater synergy and it is an opportunity to consolidate the company’s iron ore business.” The Dempo group has been involved in iron ore mining and exports for nearly 60 years. They owned the rights to mine reserves and resources estimated at 70 million tonnes of iron ore in Goa. Sesa Goa exported about 8 million tonnes of iron ore to China in 2008-09.

New entrants to Goan mining have been adopting vigorous mining policy that is creating problems for the state’s ecological balance. Environmentalists feel the state has been gifted with nature’s beauty, but ironically it is being exploited because of it. Of late Goa has been witnessing agitations in rural areas like Rivon, Colamb in Sanguem taluka; Morpirla, Betul in Quepem taluka; Mulgao, Advalpal in Bicholim taluka and Dhave, Sonal in Sattari taluka. Gramsabhas of various village panchayats are registering violent protests against illegal mining activities and reopening of old leases for excavation of iron ore.

The public hearing for environment impact assessment held this month at Rivona for granting new mining leases experienced unrest and also received about 1000 objections from locals. The United Tribals Association’s Alliance (UTAA) has come out strongly to oppose the grant of new mining leases and the renewal of old leases in remote areas of Quepem taluka. The state government last month was compelled to announce the cancellation of the proposed mining leases in Sattari taluka. Villagers from Advalpal in Bicholim taluka had approached the High Court against the illegal dumping of mining rejects by Sesa Goa and the court has banned the company from doing so.

But no one seems to be in the mood to apply the brakes on rampant mining in Goa. But the cry by activists against the excessive and illegal mining was finally heard by none other than President Pratibha Patil. During her recent visit to this beautiful state she called for preserving Goa’s unique natural environment through better management and more afforestation in mining areas.

Goa, a tiny state of about 3702 sqkm is well known for its beaches in coastal areas and scenic beauty in the hinterland. But the mining industry which has been expanding at a frightening pace over the last decade is posing a serious threat to the ecological balance of the state. Mining and associated activities have greatly affected the natural landscape in and around mining areas, which is characterized by the presence of pits and waste rejects. Of course, Goa is a major iron ore exporting state and over 60% of the country’s iron ore export accounts from Goa. In terms of getting foreign exchange earnings it amounts to nearly Rs 1000 crores per annum. Iron ore exports from Goa in 2008-09 was to the tune of 45.93 million tonnes.

The mining belt of Goa covers more than 700 sqkm and is mostly concentrated in five talukas namely Bicholim and Sattari in north Goa and Salcete, Sanguem and Quepem in south Goa. The Goan iron ore is 100% export oriented. Iron ore exports commenced in the late 40’s during Portuguese rule with around 40,000 thousand tonnes of iron ore exported through Marmagao port annually. The last decade however showed an average export of 14.8 million tonnes of iron ore, the highest being 45.93 million tonnes (Goan and non Goan origin) exported in the year 2008-09. Although of low iron content, the ore is made marketable by processing. The ore is exported in the form of lumps, fines and pellets. Goa’s proximity to a natural seaport with modern amenities and a good network of rivers within the state is an added advantage. Mining in Goa is done by open cast method. This method necessitates the removal of overburden overlying the iron ore formations. On an average about 2.5 to 3 tonnes of mining waste has to be excavated so as to produce one tonne of iron ore. Such a huge quantity of mining waste creates a problem for its storage thereby causing severe environmental pollution and damage to agriculture.

Many mining leases in Goa are operating without licences from appropriate authorities. Due to pressure from various sections the state government in recent time has brought 91 out of the 103 operating mines under its scanner. The Goa State Pollution Control Board (GSPCB) has issued notices in September to mining companies owning 78 mining leases for submission of copies of their clearances obtained under the Forest Conservation Act and from the Ministry of Environment and Forest. “We are in a process of compiling the number of replies received. If some mining companies do not have sufficient documentation, we will be forced to ask them to stop operations,” stated GSPCB chairman Simon D’Souza. Apart from these 78 mines GSPCB had also issued orders to stop work at 13 other mines. These mines were extracting ore without requisite permissions from government authorities. But Sesa Goa has managed to obtain a stay on the ‘stop work’ order from the administrative tribunal for its mine in south Goa. Some other mining companies too have approached the tribunal for a stay.

“It is a fact that notices are served to companies involved in illegal mining. But unfortunately the government will not take further action and no illegal mine will be closed because these mining companies have become a big revenue source for the ruling party,” Dr Claude Alvares of Goa Foundation pointed out. The Goa Foundation has been working to preserve the ecological balance and have been vociferously opposing illegal mining activities in Goa. Dr Alvares also stated, “Almost 30% of mining revenue to state and Central governments come from illegal mining. While exporting ore it is not classified as legal and illegal.”

Activists of the Goa Federation of Mining Affected People (GOAMAP) had urged President Pratibha Patil during her Goa visit last week to urgently look into the issue of illegal mining and disasters caused by the open cast iron ore mining in Goa. They had urged Patil to undertake a visit to the Goa mining belt covering the most affected villages of Sirgao, Advalpal, Pissurle, Mayem, Bicholim, Savordem, Colamb, Rivona and other areas to see the disappearance of land including paddy fields, mountains, habitats etc.

The President did not undertake any such visit, but she made a mention of this issue while speaking at a civic reception hosted by the state government. She said, “Goa’s unique natural environment needs to be protected as it promotes eco-tourism and adds to the state’s tourism profile. Many countries have greatly benefited from their forests. Better management and more afforestation in mining areas are important to generate social, economic and environmental benefits.” Environmentalists feel optimistic after the President’s words that some action may be taken.

Until the beginning of the last decade of the last century, a few mining companies including big industry houses like the Dempos, Salgaokars, Chowgu-leys, Bandekars, Timblos etc. were largely involved in mining. These local miners were essentially confined to the state. During the post-liberalization boom that the industry witnessed, iron ore from even neighboring states like Karnataka and Andhra Pradesh was also procured to blend with the local product and to meet the ever increasing demand. Although the total ore exported during last year from Goa was about 45 million tonnes, about 38 million tonnes was local ore while the remaining was procured from neighboring states.