Panaji, Dec 30 (IANS): The Goa chapter of Mining Engineers' Association of India (MEAI) has written to Chief Minister Pramod Sawant, appealing for immediate resumption of mining to address the unemployment crisis and earn much-needed revenue for the state.

The industry body, through the letter, pointed out that auction is not suitable for sustainable mineral development in Goa, owing to the peculiar land-related legacies in the state, and pending matter in the court.

Further, auction will make the mines unworkable owing to adverse cost implications and reduced mining business, thus affecting state royalty and mineral revenues. It also expressed apprehensions regarding the current efforts of the state government to identify and grant the mining blocks/greenfield leases through auction process as there is little clarity about the procedures like 'exploration' which is fundamental for working out the feasibility of business and for ensuring the fair and competitive auctioning process.

Calling auctioning of mining leases against the spirit of ease of doing business and unfeasible due to pending legal case in the Supreme Court since 1998 regarding concessionary rights, MEAI, in the letter to the Chief Minister, observed that it would be unfair if the state of Goa is not granted extension as per MMDR 2015 i.e., Grant of 50 years as compared to rest of India.

It strongly demanded necessary legislative amendment prospectively to the Concessionary rights and/or Legislative amendment to the Goa, Daman & Diu Concessions (Abolition & Declaration as Mining Leases) Act, 1987 (Goa Concessions Act), in order to legally give an extension of lease life to the leases in accordance with MMDR 2015 apart from presenting the same in the Court.

"The mining industry has been the lifeline of the Goan economy for over 70 years supporting the livelihood of almost 300,000 people. The sector still has the potential to bounce back and be the highest revenue generator for the state and create massive employment once operations commence. Government must not let ulterior motives derail its efforts to restart mining operations and bring relief to mining dependents and the state's ailing economy," stated Cletus D'Souza, Chairman, MEAI (Goa Chapter)

Calling the state government's move to auction a few greenfield leases blocks an extra initiative to resume mining in the state, MEAI observed that it is not available option for scientific and sustainable mining.

The MEAI further observed that auction may not compensate for the state revenue or the employment lost due to prolonged suspension of working mines. It highlighted that during the last three years of mining closure the mining professionals went through a difficult phase not only in terms of financial aspects but also in terms of idling the talent or technical expertise.

MEAI appreciated the recent step taken by the state government to approve policy for regularisation and handling of mining waste dumps which are outside mining leases. The MEAI clarified they will support every move which can pave the way for the resumption of mining industry, and address the unemployment issues and economic crisis in the state.

However, the MEAI raised the serious concerns over the feasibility of proposed waste dump policy, since the material lying outside the mining leases as waste dump is of low quality which is not saleable in the current international market circumstances. It is technically a challenge to select the mining dumps and improve the grade of material to make it saleable because there is no fresh ore extraction that can be blended with these reject dumps for improving the grade to meet the market demand. But we reiterate this is a good move and has to be carried out in most environment friendly manner.

Expressing pain and anguish over the attempt to underplay the importance of resumption by creating a negative impression of the mining sector during the present election fervour, the association highlighted that the income generated from mining by way of Royalties, District Mineral Fund, NMET, and additional Goa Iron Ore Permanent Fund (GIOPF) does ensure a fair return to the government, as compared to the revenues of pre-2015 level.

It demanded clarity on whether the concept of GIOPF would continue for the proposed greenfield blocks and also whether the carrying capacity of 20M tonnes will be applicable.

Calling the state government to be mindful of the unique conditions that exist and apply only to the state of Goa and be assertive to the needs of the industry and communities dependent on mining activities, the MEAI urged the Chief Minister to address the miserable situation of the state's mining sector through amendment in the Goa Concessions Act, 1987 and persevere with the Central government.