Miners in Goa expect to sell 20 million tonnes (MT) of iron ore that they have been allowed to mine from the state and are prepared to slash prices in a bid to make their ore competitive amid demand slowdown. Goa mainly produces low grade iron ore (with iron content generally in the range of 55-58 percent) that is exported to China and other consuming countries. Iron ore is the main ingredient for making steel. Iron ore mining in Goa has started after a gap of three years and mining conglomerate Vedanta is set to ship the first consignment in October.

The Supreme Court has permitted the state to mine 20 MT of the ore. "We expect to sell all of 20 MT of iron ore. Even with subdued global prices (including of grades with iron content more than 60 percent) and a huge tax burden on the miners in Goa, we are fairly certain of finding buyers for our low grade ore," Goa Mineral Ore Exporters Association (GMOEA) President Ambar Timblo told PTI. The prices of iron ore (with Fe content 56-57 percent) in the global market is in the range of USD 37-40 per tonne. Also Read: NMDC sets up subsidiary for steel plant in Jharkhand October-May is the period when most of the ore is exported from Goa. When asked if miners are considering any discount considering low prices, Timblo said: "Definitely a possibility." The members of the industry body were in the national capital to meet officials from the Mines Ministry to put their demand of cutting export duty and allowing to dump mining waste outside the lease area.

"Already there are duties and then there is the District Mineral Foundation (DMF) contribution of 10 per cent, the Goa Mineral Ore Permanent Fund Scheme (GMOPFS) of 10 percent and export duty of 10 percent," Timblo, who is also the Managing Director of Goa's leading miner Fomento Resources, added. Mining in Goa has a 30 percent export duty on iron ore fines with Fe content of 58 percent and above and 10 percent for below this content. For iron ore lumps, the duty is 30 percent. The miners in the state are also demanding slashing of the duty for ore below 58 percent of iron content. "We have been successfully exporting our low grade ore for over 65 years and will do it this time as well. But we are urging the government to seriously consider our demands so that we can better compete in the global market that is going through one of its toughest phases," he said. Another demand of the miners is permission to dump the mining waste outside the lease area.

"One needs to understand that the mining lease area in Goa is less than 100 hectares and the average lease are in around 60 hectares. This is a reason that we are urging that we be allowed to dump our waste in a designated area outside the lease," Timblo said. Vedanta stock price On October 09, 2015, Vedanta closed at Rs 103.60, up Rs 10.75, or 11.58 percent. The 52-week high of the share was Rs 263.55 and the 52-week low was Rs 76.70. The company's trailing 12-month (TTM) EPS was at Rs 7.98 per share as per the quarter ended June 2015. The stock's price-to-earnings (P/E) ratio was 12.98. The latest book value of the company is Rs 114.88 per share. At current value, the price-to-book value of the company is 0.90.