Mormugao Port Trust posts 30% drop in iron ore exports

PANAJI: The turbulence in the mining sector has forced Mormugao Port Trust (MPT), the country's biggest iron ore exporting port, to report 30 per cent drop in iron ore exports for financial year 2011-12.

MPT Chairman P Mara Pandiyan said that only 29.37 million tonnes of ore were exported during last fiscal compared to 40.63 million tonnes in the previous fiscal.

Overall, Goa exported 43 million tonnes of ore during last fiscal, which was sent from MPT and Panaji minor port.

Mormugao Port Trust exports 48 per cent of the country's iron ore.

Pandiyan said that ban on iron ore export by Karnataka, ban on export of iron ore dumps, restriction in transportation of iron ore from mines to loading jetties in view of congestion on the road, recent hike in the customs duty to 30 per cent from 20 per cent have decreased port traffic.

MPT has a capacity to handle 40-50 million tonnes of ore annually, of which less than half capacity is currently being put to use.

Pandiyan said that the port has not made any projection in the iron ore export for current fiscal as the trade would depend on the policies of newly inducted State government.

"We will have to see to what extent government will allow mining of the ore," he told reporters here.

The port, which contributes 35 per cent of state GDP, has more than three lakh people depending on it.

Pandiyan said the current fiscal is expected to be 'fairly good' considering the decisions envisaged by the Manohar Parrikar-led government.

Against the backdrop of allegation of illegal ore being shipped through ports, Pandiyan said that the MPT has been insisting for no-objection certificate (NOC) from the State government since February last year.

"I can say that not a single gram of ore has been exported illegally from the port during last year," he said.

The state government should also make it mandatory to name the mining firm on the NOCs to ensure full-proof verification of source of ore before it is exported, it added.