Mining industry may take a hit this year if ore exports don't resume soon: Parrikar

The iron ore mining activity, which was supposed to resume after the monsoon, is yet to take off due to falling international prices for low grade ore, coupled with the increased taxation on the industry.

"Due to the falling international market prices for the ore, many mine owners are not very keen to start the activity. If the mining activity comes to a halt, the economy will be affected for the people dependent on the business," Parrikar told reporters today.

The chief minister said that although the mining activity is yet to begin, the economy in these areas is "reasonably okay".

"But if the mining activity does not resume in the coming days, then the season is best as gone," he added.

Responding to a question over the conflict between the mining companies and the truck owners, who transport the ore from extraction site to jetties, Parrikar said the state government cannot interfere between them (mine and truck owners) after certain limit as it is a business for both.

The truck owners are demanding higher tariff from the mining companies for the transportation of the ore.

"Operating truck for a mining company is a business just like any other. If you cannot find the business profitable or affordable, then you should not enter the business and use the truck for some other purpose," he said.

Parrikar said the state government has been holding talks with both the parties (mine and truck owners) and the issue will be sorted out within the next 15 days.