A Report

On

Iron Ore Handling Facilities at Mormugao Port

and

Iron Ore Mining in Goa

Submitted in partial fulfilment of:

BITS C221/BITS C231/BITS C241 Practice School-I

Prepared by:

Prashant Chhabra 2009B2A4395P

Prankur Sharma 2009B3A4622P

14 June, 2011

Birla Institute of Technology and Sciences, Pilani

Acknowledgement

A comprehensive report always requires the goodwill, encouragement, guidance and support

of many people. We are grateful to our Vice Chancellor Prof. B.N. Jain for all the inspiration

and motivation given for this report.

We specially thank Mr. P. Mara Pandiyan, Chairman, MPT for giving us the privilege to

come here and do our Practice School programme. We also like to thank Mr. K. C.

Kuncheria, CME who gave us our project and provided us the motivation to put our full

effort towards it.

We thank Mr. Athait, our project guide who always pointed to the right path and providing us

with every facility required. We deeply acknowledge the contribution of Mr. Singbal who

provided useful documents and insights.

We are deeply indebted to Mr. Narayan Manjarekar our PS instructor for his unflinching

support and guidance

We also thank Mr. Tiko, Mr. Gupta and Mr. Joseph for showing us the plant facilities and

giving an indepth explanation to many aspects of our project.

At last we express our sincere thanks to all our friends for their constant encouragement,

guidance and help rendered whenever necessary. We wish to express our appreciation to all

friends who spared a great amount of time in going through the report and providing

suggestions and error-free proof reading.

It would be impossible to refer in detail to the many persons who have been consulted in the

compilation of this work. We may be excused for not naming them individually.

Prashant Chhabra

Prankur Sharma

Abstract

Mormugao Port occupies a prominent position as India's premier iron ore exporting port. This

report gives a background of the Mormugao Port Trust. It lists the facilities available at the

Port of Mormugao for Iron Ore cargo laying stress on the Mechanical Ore Handling Plant

(MOHP) at Berth No. 9 of the Mormugao Port. It also explores the dynamics of Iron Ore

Mining in the state of Goa while studying its availability and marketability. This report thus

aims at documenting the contribution of Mormugao Port as a major centre of Iron Ore export

and Iron Ore mining in the Goan context.

Table of Contents

1. Introduction 1

2. Some Basic Information about Mormugao Port 3

3. Brief History of Mormugao Port Trust 5

4. Imports and Exports through Mormugao Port 8

5. Berths and Mooring Dolphins 9

6. Facilities at Port 10

7. MPT and Iron Ore 12

8. Total Iron Ore Export through Mormugao Port over Last 3 Years 14

9. Mechanical Ore Handling Plant (M. O.H. P.) At Berth No. 9 15

10. Brief Description of the Facilties at MOHP 16

11. Transhippers 17

12. Map of the MOHP 18

13. Equipment at M. O. H. P. for handling of Cargo 19

14. Iron Ore Handling Facilities at Mormugao Port as compared to other

iiiiiiMajor Indian Ports 23

15. Operation cycle at MOHP 24

16. Mining in Goa 25

17. Company Profiles of Major Players in Iron Ore Mining 29

18. Factors supporting Iron Ore Mining in Goa 30

19. Iron Ore Mining Areas in the state of Goa 31

20. Types of Iron Ores found in Goa 32

21. Case Study: Study of Operations of SESA-GOA 34

22. Conclusion 42

23. Bibliography 43

Table of Illustrations

Illustration 1: Major Ports of India 3

Illustration 2: Transworld Trade Links of MPT 4

Illustration 3: Commodity - Wise Traffic Handled At Mormugao Port

from 2007-2008 to 2009-10 8

Illustration 4: Berths and Mooring Dolphins at MPT 9

Illustration 5: A ship being loaded at Berth No. 9 12

Illustration 6: Shipper-Wise Exports of Iron Ore from Mormugao

Port (In '000 Tonnes) 14

Illustration 7: Schematic Diagram of the MOHP 18

Illustration 8: Finger Jetty and T-Shaped Jetty 19

Illustration 9: Barge Unloaders at MOHP 20

Illustration 10: Conveyor Belt carrying Cargo at MOHP 21

Illustration 11: Reclaimer reclaiming Iron Ore from the Stockyard 21

Illustration 12: A shiploader loading a hatch of the vessel 22

Illustration 13: Summary of Iron Handling Facilities at Major Ports 23

Illustration 14: Schematic Diagram of the Stockyard 24

Illustration 15: Investment Climate of the State with regard to Mining 26

Illustration 16: Brief about the 4 Major Iron Ore Mining Companies 29

Illustration 17: Minerals Map of Goa 32

Illustration 18: Characteristic of Important Haematite Deposits in Goa 34

Illustration 19: Content of Iron Ore Fines Gradewise 34

Illustration 20: Content of Iron Ore Lumps Gradewise 35

Illustration 21: Total Iron Ore Sales by SESA-GOA over Last 5 Years 40

Illustration 22: Statewise Production of Iron Ore by SESA-GOA (in million tonnes) 41

1

1. Introduction

The Port of Mormugao. One of the twelve major ports in India is situated in Goa state,

between the major ports of Mumbai and New Mangalore. Mormugao Port is the largest iron

ore exporting port of India and is a major import port for cooking coal.

The vision for Mormugao Port Trust is:

―MPT wishes to be the preferred port for the region, recognised for its environmental

policies, efficiency in cargo handling and service to customers, providing quality of life for

the workforce and support to the community.‖

The major commodity handled by this port is Iron ore. The rivers Zuari and Mandovi are

navigable for barges. So, the port is easily accessible to the mines located in hinterland. This

strategic location of port makes it really important. The port has 11 berths of which the most

important berth of the port is berth no.9 which handles iron-ore. Port earns around 70% of its

revenues from iron-ore export. To handle this voluminous cargo port has installed

Mechanical Ore Handling Plant (MOHP).

Haematite and magnetite are the most prominent of the iron ores found in India. Indian

deposits of haematite belong to pre-Cambrian iron ore series and the ore is within banded

iron ore formations occurring as massive, laminated, friable and also in powdery form. The

major deposits of iron ore are located in Jharkhand, Orissa, Chhattisgarh, Karnataka and Goa

States.

About 60% of haematite ore deposits are found in the Eastern sector and about 80%

magnetite ore deposits occur in the Southern sector, especially in Karnataka. Of these,

haematite is considered to be superior because of its high grade. Indian deposits of haematite

belong to the pre-Cambrian iron ore series and the ore is within banded iron ore formations

occurring as massive, laminated, friable and also in powder form. India possesses haematite

resources of 14,630 million tonnes of which 7,004 million tonnes are reserves and 7,626

million tonnes are remaining resources. Major Haematite resources are located mainly in

Jharkhand-4036 million tonnes (28%), Orissa-4761 million tonnes (33%), Chattisgarh-2731

million tonnes (19%), Karnataka-1676 million tonnes (11%) and Goa-713 million tonnes

(5%). The balance resources are spread over in the state of Maharashtra, Madhya Pradesh,

2

Andhra Pradesh, Rajasthan, Uttar Pradesh and Assam together contain around 4% of

haematite.

Normally, iron ore mining in India is done by opencast method and on the basis of mining

methods, the mining can be broadly divided into two categories, i.e., manual and mechanized.

Majority of the large mechanised mines are in the public sectors whereas manual mines are

mainly in the private sector. The current production capacity of iron ore in India is around

160 Mt. The iron ore deposits of the Eastern, Central and Southern zone do not contain much

overburden material except laterite and some low grade ferruginous shales and BHQ patches,

whereas in Western zone, (Goa region) about 40 Mt of iron ore is produced during 2009-10

and another 2.5 to 3.5 times of the waste is excavated as overburden. In general, iron ore

mining in India being done by developing benches from the top of the hill and carried

downwards as the ore at the top gets exhausted. The methodology being adopted for winning

of iron ore is by shovel – dumper combination in case of major mechanised iron ore mines.

The bench height generally adopted in iron ore mines in India is ranging from 6meters to

14meters and the slope of the benches ranging from 450 to 600 depending on the consistency

/ tensile strength of the rock. However, in Goa region where the ore is softer, hydraulic

excavator and wheel loaders are the principal loading equipment used, height of benches is

restricted between 4Mts. and 7Mts.

For the preparation of our report we interviewed operators, technicians and the barge crew.

These interviews gave us more insight about the whole process than any other written

document.

3

2. Some Basic Information about Mormugao Port

Mormugao Port, a protected open type natural harbour is situated on magnificent and

hospitable coastline on the West Coast of India at in the State of Goa. The port is

approximately 370 kms south of Mumbai and 300 kms North of New Mangalore and 575

kms north of Kochi. It is an open type harbour protected by a breakwater and a mole built

from the outer end of the breakwater and running parallel to the quay. The harbour is also

protected from the South West Monsoon as it has been constructed on the leeward side of

Mormugao Headland.

Illustration 1: Major Ports of India

4

Mormugao Port, GOA one of the oldest ports on the west coast of India, with a fine natural

harbour, has been relentlessly serving the nation in its economic development for over a

century. The Port was declared a Major Port on 2.12.1963.

Illustration 2: Transworld Trade Links of MPT

Mormugao Port occupies a prominent position as India's premier iron ore exporting port. A

quantity of over 40.32 million tonnes of iron ore is exported in 2009-10 through this port

mainly to China, Japan, Korea, European and Gulf countries. This accounts for about 35% of

the total iron ore export from India.

During the financial year 2009-2010 the port handled a traffic of 48.85 million tonnes which

is 9% of the total traffic of 560.97 million tonnes handled by all the twelve major ports of

India. The traffic during the year consisted of 40.57 million tonnes of iron ore including iron

ore pellets, 5.64 million tonnes of coal/coke and 1.62 million tonnes of petroleum products

and other liquid cargo. The remaining traffic consisted of cargoes like fertilizer, alumina,

limestone, containerized cargo, H.R.Steel Coil, Steel slabs, Sugar, Bauxite etc. The

Mechanical Ore Handling Plant loaded 12.01 million tonnes of iron ore. The general cargo

traffic was 6.65 million tonnes. A quantity of 191,815 tonnes (in 17297 TEUs) of

containerized cargo was also handled at the port during the period.

5

3. Brief History of Mormugao Port Trust

At the time of its commissioning in 1888, the Mormugao Port comprised of 3 berths along

with a breakwater having a length of 358 meters. As the years rolled by, the infrastructure

slowly kept growing. By 1922, Berths 4 and 5 were built and the breakwater was extended to

its present length of 522.40 meters. A mole of 270 meters was added.

With the emergence of mining as a major industry in Goa, a Master Plan was evolved by the

Portuguese for the development of Mormugao Port as an iron ore terminal, envisaging

"dedicated berth fitted with Mechanical Ore Loading Plants, provided and financed by

various iron ore exporters." In accordance with this, in 1959 M/s Chowgule & Co. Pvt. Ltd.

was permitted to set up Asia's very first Mechanical Ore Handling Plant at Berth No.6, with a

capacity of 1000 tph. Berth 7 was constructed as an adjunct to it. The Liberation of Goa on

December 19, 1961 marked the end of an epoch in Goan history.

Mormugao Port went through a fair amount of change as the emphasis shifted to development

of infrastructure. A couple of years after liberation, the port was delinked from the Railway

management. The main railway section from Vasco da Gama to the border of Goa was

transferred to the Southern Railways. The Port however, operated its own railway system

between Vasco da Gama interchange point and the harbour area.

From 1948 onwards the iron ore traffic gained importance. The Japanese were rebuilding

their nation and Goan iron ore was fated to play a key role in the Japanese industrial

renaissance. Japan preferred Goan Iron ore for its expanding steel industry on account of

price consideration and other logistics. The Port of Mormugao was now poised for a dramatic

growth. It would no more be a sleepy port importing table wines from Portugal and exporting

oil cakes from Hubli.

Others avenues had earlier been opened by enterprising foreigners. Josephine Hougaz was

one such an ethnic Syrian holding a US passport. She introduced Goan cashew nuts to

American chocolate makers. Wall Street had crashed. The year was 1929, for almonds and

walnuts, until then the preferred fillings for

American chocolate and pastry makers had reached levels that were beyond most of their

consumers. But cashew nuts, though subject to considerable sea freight additional for

6

importers, were in comparison cheap but nutritious and tasty American confectioners took to

Goan cashew nuts in the year of the Wall Street crash.

The exploitation of iron ore mines in Goa on a commercial scale since 1947, brought about

revolutionary changes in the pattern of Mormugao Port traffic. The level of traffic at the port

rose to over 2.78 lakhs tonnes in the year 1953. In the years that followed, the traffic grew by

leaps and bounds reaching the mark of 6.4 lakh to 14.8 million tonnes in 1973-74. Today, the

iron exported through Mormugao constitutes 39 per cent of the total iron ore exports from

India, and the port occupies a prestigious position amongst the Major Ports of the country.

The growth of traffic accentuated the inadequacy of the available port facilities but it offered

new opportunities to daring entrepreneurs. In 1959, Chowgule & Co. Pvt. Ltd. obtained a

concession from the Portuguese government and set up a Mechanical Ore Handling Plant

with a handling capacity of 10,000 tonnes per day. The growth of traffic accentuated the

inadequacy of the available port facilities but

It offered new opportunities to daring entrepreneurs. In 1959, Chowgule & Co. Pvt. Ltd.

obtained a concession from the Portuguese government and set up a Mechanical Ore

Handling Plant with a handling capacity of 10,000 tonnes per day. It was, it is claimed, the

first of its kind in Asia.

The declaration of Mormugao as a Major Port in 1964 was a milestone in the annals of its

history as it joined the ranks of the country's ten major Ports. The Port administration could

now embark upon a sustained development programme as its newly formed Board of

Trustees was empowered to take major decisions financial or otherwise.

With the rise of Brazil and Australia in recent times as aggressive ore exporters, the mineral

ore industry today was seeing a sea of changes in iron ore market.

In 1965 therefore, a Perspective Plan was drawn up by a reputed firm of consulting engineers,

seeking to develop Mormugao Port systematically for providing deep waters and high

capacity loading, particularly in relation to iron ore exports, which needed to be competitive

in the international arena by reducing the transportation cost.

As a first step in that direction, a 20-year perspective plan for the port development was

prepared in February 1965, by the consulting engineering firm of Randal, Palmer & Tritton.

7

Thereafter, in February 1968, HOWE (India) Pvt. Ltd. were appointed to prepare the design

study for the establishment of a modern mechanical ore handling facility for the port within

the framework of the perspective plan. As a follow-up on the report by HOWE (India) Pvt.

Ltd. a mechanized ore handling facility for receiving, stockpiling, reclaiming, weighing,

sampling, and ship-loading of 12 million tonnes of iron ore annually was installed and

commissioned in 1979. The rated loading capacity of the ore handling system was of the

order of 8,000 tonnes per hour. The dredging of the channel and berths was carried out to

permit the loading of 60,000 dwt. ore carriers initially. Barge unloaders and rail wagon

tippers were provided for quicker and more efficient handling of incoming ore.

Major developments of the Port were taken up only after it became a Major Port. A number

of developmental projects were implemented under the various Five Year Plans of the

Government of India. Consequently, a dedicated mineral oil berth, berth No. 8 was

constructed in 1976. Later on as the general cargo traffic was gradually picking up in the

Port, a number of schemes were implemented with a view to augment the general cargo

handling facilities at the Port. Two multi-purpose general cargo berths, berth No.10 and No.

11 having draft of 11.00 mts and 12.50 mts were constructed and commissioned in 1985 and

1994 respectively. Meanwhile the Mechanical Ore Handling Plant installed in 1959 at Berth

No. 6 was de-commissioned in 1992 due to obsolesce. The age old berths 1 to 3 were leased

out to a private company, Western India Shipyard Ltd, for installing a modern ship repair

facility, which was commissioned in 1995. In 1997, the metre gauge railway of the Port

linking to the south Central Railway was converted to broad gauge. By this, the Mormugao

Port is now accessible for any part of the country through the broad gauge railway system.

8

4. Imports and Exports through Mormugao Port

Illustration 3: Commodity - Wise Traffic Handled At Mormugao Port from 2007-2008 to

2009-10

Imports

The Port of Mormugao imported over 19.6 million tons of cargo Imports were dominated by

12.8 million tons of POL Crude. Other imports included coal (1.7 million tons), liquefied

petroleum gas (1.4 million tons), and fertilizer (830 thousand tons). Other imports included

limestone, cement, timber, and

Exports

Iron ore exports from Mormugao Port in Goa may rise 10.8 per cent to 46 million tonnes in

the current financial year, from 41.5 million tonnes a year earlier on increased shipments.

Mormugao Port is the premier iron ore exporting Port of India with an annual throughput of

around 33.81 million tones of iron ore traffic.

9

5. Berths and Mooring Dolphins

The present berthing facilities available at the Port are as follows:

Illustration 4: Berths and Mooring Dolphins at MPT

10

6. Facilities at Port

Harbour Data, Berths, Moorings & Anchorage Facilities

1. Vessel Traffic Management System (VTMS)

In tune with the latest practices in ports world-wide,

Mormugao Port has commissioned state of the art, all

weather, Vessel Traffic Management System (VTMS) on

to provide a highly sophisticated computerized radar & AIS

system for vessel traffic control and safety in the

navigational channel and other areas of port waters.

2. Approach Channel

Length of Outer Channel : 5.2.kms

Length of Inner Channel : 2.3 kms

Width of Channel : 250 m

Depth : 14.4 m to 13.1 m below chart datum

Turning Basins : 2 nos. of 480 m diameter

Tidal Range : Springs- 2.3 m/ Neaps-1.0m

3. Navigational Aids

The approach channel of Mormugao Port is marked by lighted buoys in addition to other

navigational aids prescribed in the Indian Naval Hydrographical Chart nos. 2020, 2022 &

2078 and B.A. Chart Nos. 492, 1509. One Radio Beacon 'RACON' works round-the-clock in

all weathers at Aguada Light House displaying two dashes and one dot (--.) on the ships radar

in X-band.

4. Communications

Signal station situated on the north-west of the Mormugao Headland functions round-the-

clock with telephone service and VHF channel 16, 14, 12, 11 & 10 having the call sign

"GOA PORT".

5. Pilotage

Pilotage is compulsory for inward and outward movement of ships and movement between

11

berths and mooring within the harbour. Pilotage service is provided round-the-clock with

prior advice to the Harbour Master through agents. During monsoon season, pilotage is

restricted to day light hours only.

6. Tugs

Two VST Fire Fighting Tugs of 45 T Bollard pull

One ASD Tug of 45 T Bollard pull

One VST Fire Fighting Tug of 30 T Bollard pull

7. Flotilla

Four Launches for line handling, pilotage, survey, etc.

One Self propelled water barge of 200 tonnes capacity

One Dumb barge capable of handling mooring and

channel buoys, supplying 100 tonnes fresh water and

receiving 50 cu.m.slops.

One security launch for patrolling.

8. Anchorage

The large roadstead to the West and the North-West of the

Harbour provides anchorage in stream for more than 20

ships during the eight months fair season (October to May)

and 8 ships can be accommodated inside the break water

throughout the year.

12

7. MPT and Iron Ore

Over the years, the port and the iron ore industry have developed a symbiotic relationship.

During the economic blockade years of 1955-1961, it was iron ore that kept Mormugao port

alive and functioning. The strength of this long relationship can be seen from the fact that the

Port is consistently recording the highest export tonnage of ore in the country.

Today, countries like China, South Korea, Italy and other European countries have joined the

roster of countries to which Goan iron ore is exported. China has replaced Japan as the largest

consumer, importing 28.76 million tonnes of ore during the year 2008-2009

Illustration 5: A ship being loaded at Berth No. 9

Ever since the inception of the iron ore trade in Goa, ore exporters have displayed a

remarkable ability to adapt and devise innovative responses to changing circumstances and

times, in the process branching out into related industries that have made them increasingly

self sufficient and reliant.

The present draft at Berth No.9 permits the loading of Panamax as well as Cape size vessels

alongside the Mechanical Ore handling plant. Undaunted, the mine owners have acquired

transhippers, which uptop the vessel in midstream. This form of combination loading enables

vessels of 2,50,000 DWT to be served at Mormugao port, is a unique instance of private

investment, helping to raise the port to international standards and enabling Goa retain its

place in the world Iron ore market.

The port has constructed 3 mooring dolphins capable of handling three to four vessels at a

time. This facility can handle 5.30 million tonnes of traffic annually. At present, considering

13

the demand for trade, additional 3 mooring dolphins are constructed which could handle 2.00

million tonnes of traffic annually.

Recently the port has introduced Trade Promotion Scheme whereby Ships are permitted to

load by Ships' own gears at West of Breakwater.

14

8. Total Iron Ore Export through Mormugao Port over Last 3 Years

SHIPPER 2007 - 2008 2008 - 2009 2009 - 2010

Sesa Goa Pvt. Ltd 8252 11011 11531

Chowgule & Co Pvt. Ltd 2868 3167 3353

V.M.Salgaocar & Co Pvt. Ltd 1823 2052 2490

V.S. Dempo & Co Pvt. Ltd 2001 2204 3226

Sociedade de Fomento

Industrial Pvt. Ltd. 2251 2438 2910

MMTC 414 235 275

Bharat Mines & Minerals Ltd 106 28 47

Timblo Pvt. Ltd. 489 543 444

VGM / VMCPL 66 130 92

V.M. Salgaocar Sales

International 274 81 532

Prime Minerals Exp. Ltd 498 2504 3498

MSPL Ltd 2087 1935 879

Damodar Mangalji & Co Ltd 548 1407 1759

OTHERS 5625 6074 9284

TOTAL 27302 33809 40320

Illustration 6: Shipper-Wise Exports of Iron Ore from Mormugao Port (In '000 Tonnes)

15

9. Mechanical Ore Handling Plant (M. O.H. P.) At Berth No. 9

MPT provides a service to exporters for handling their iron ore, by aggregating the same at MPTs

stockyard and loading it onto vessels nominated for export. This is achieved through the Mechanical

Ore Handling Plant (MOHP).

This ore is brought by river in barges and unloaded at the MOHP. The MOHP has 8 Barge

Unloaders and 1 continuous Barge Unloader, feeding 3 Cross Conveyors, leading to the

Stackers, which stack the cargo in the stock yard. Each exporter has a plot of specified

dimensions, in this stack yard.

The Port provides a fully Mechanised Ore Handling Plant at berth no.9 to handle over 12

million tonnes of iron ore, per annum, by receiving them from barges, stock-piling at the

plots and loading in vessels of sizes ranging from 30,000 DWT to over 2, 10,000 DWT with

L.O.A of up to 335 Mts. and beam 50Mts.vessels can be loaded at this berth up to a draft of

14.1 Mts. In conjunction with high water and 13.3Mts. at all stages of tide during fair season.

While ships of 70,000 DWT can be fully loaded at this berth, bigger vessels can be loaded

upto permissible draft and thereafter up-topped by privately owned transhippers, which are

licensed to operate in this port.

The aim of the Plant is to ensure that productivity is maximized without compromising

safety, maintenance or the health of the Plant

16

10. Brief Description of the Facilties at MOHP

Acceptable size of vessel at Berth 9:

Maximum Permissible

LOA 335 m

BEAM 52 m

Air Draft 19.5 m

Draft in conjunction with tide 14.0 m

DWT (approx.) 2,75,000

Parcel size (approx.) 1,50,000 tonnes

Stockyard at Mechanical Ore Handling Complex:

Area 80,000m2 approx.

Storage capacity 10 lakh tonnes

Annual Capacity 115 lakh tonnes

Average Ship loading rate: 45 -50,000 tonnes per day.

17

11. Transhippers

At present the limited draft at Berth No: 9, permits the loading of only Panamax size vessels.

However the Cape size vessels can be up topped upto 200,000 tonnes or more by transhippers

(loading vessels), which are owned and maintained by the exporters. The transhippers thus

play a complementary role in the port's operations and help raise Mormugao port to

international standards.

Four transhippers operate except: during

the monsoon period, carrying out both

primary loading and uptopping. The

capacity of these transhippers is estimated

at 11.5 million tonnes per year.

Ship loading also takes place in the river at

the mooring dolphins, particularly during

the monsoon when Berth 9, the transhippers and the nearby competitor port, Panjim, are all

closed.

Transhippers, each with an average loading capacity of about 15,000 tpd are operated by

private exporters in mid-stream for uptopping large size vessels that are initially loaded by

MOHP at berth No.9 to the permissible draft. At times, ships are permitted to be loaded

wholly by transhippers in mid stream. In addition to the above, one floating crane with

loading capacity of 10,000T/day is operating at west of breakwater.

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12. Map of the MOHP

Illustration 7: Schematic Diagram of the MOHP

19

13. Equipment at M. O. H. P. for handling of Cargo

1. Finger Jetty

A jetty is any of a variety of structures used in river, dock, and maritime works that are

generally carried out in pairs from river banks, or in continuation of river channels at their

outlets into deep water; or out into docks, and outside their entrances; or for forming basins

along the sea-coast for ports in tideless seas. The forms and construction of these jetties are as

varied as their uses.

Comparison between a Finger Jetty and T-Jetty: Finger jetty is a more efficient pier structure

because it could accommodate vessels at both sides of the jetty. However, there should be

sufficient water depth as the berths at finger jetty is relatively close to shoreline when

compared with T-shaped jetty so that it is anticipated that vessels are required to berth at

shallower water. Moreover, there should be no cross current to enhance berthing at both sides

of finger jetty.

Illustration 8: Finger Jetty and T-Shaped Jetty

2. Continuous Barge Unloader (CBU)

For high capacity unloading applications, CBUs and CSUs offer an economical, efficient

unloading option when compared with alternate unloading methods. The Continuous Barge

Unloader is designed to unload materials such as coal, lime, limestone, petroleum coke, ore,

woodchips and grains from barges at free digging rates of up to 5,000 tons per hour. This

extremely efficient machine maintains a much higher average offloading rate than other types

20

of barge unloaders, while horsepower requirements are less than pneumatic systems. The

CBU is very easy to operate, does not degrade fragile products and can be installed quickly

due to modular construction.

Illustration 9: Barge Unloaders at MOHP

3. Grab Barge Unloader (GBU)

The grab type ship unloader is the traditional method to unload bulk cargo. A clamshell

bucket is cycled In and out of the ships hold, unloading with each scoop different quantities,

depending on the design specifications. The grab bucket is found suitable for handling or

unloading from barges and storage areas, bulk iron ore, ore fines, caked or frozen lumps or

pellets. The clamshell is suspended from a traversing trolley and is raised and lowered by a

winch. The ship unloader typically incorporates a hopper that provides a metered material

flow to the pier conveyor and traverses the ship on pier-mounted rails to access each hold.

4. Conveyor Belt

A conveyor belt (or belt conveyor) consists of two or more pulleys, with a continuous loop of

material - the conveyor belt - that rotates about them. One

or both of the pulleys are powered, moving the belt and

the material on the belt forward. The powered pulley is

called the drive pulley while the unpowered pulley is

called the idler. There are two main industrial classes of

belt conveyors; Those in general material handling such

as those moving boxes along inside a factory and bulk

material handling such as those used to transport

industrial and agricultural materials, such as grain, coal, ores, etc. generally in outdoor

locations.

A Simple Conveyor Belt System

21

Illustration 10: Conveyor Belt carrying Cargo at MOHP

5. Stacker

A stacker is a large machine used in bulk material handling applications. A stacker's function

is to pile bulk material such as limestone, ores and cereals onto a stockpile. A stacker usually

operates on a rail-like structure with movable wheels, but the main operation is performed on

a fixed place.

Stackers are nominally rated in tph (tonnes per hour) for capacity and normally travel on a

rail between stockpiles in the stockyard. A stacker can usually move in at least two directions

typically: horizontally along the rail and vertically by luffing its boom. Luffing of the boom

minimises dust by reducing the height that the coal needs to fall to the top of the stockpile.

The boom is luffed upwards as the stockpile height grows. Some stackers are able to rotate by

slewing the boom. This allows a single stacker to form two stockpiles, one on either side of

the conveyor.

6. Reclaimer

Illustration 11: Reclaimer reclaiming Iron Ore from the Stockyard

22

A reclaimer is a large machine used in bulk material handling applications. A reclaimer's

function is to recover bulk material such as ores and cereals from a stockpile. Reclaimers

normally travel on a rail between stockpiles in the stockyard. A bucket wheel reclaimer can

typically move in three directions: horizontally along the rail; vertically by "luffing" its boom

and rotationally by slewing its boom. Bucket wheel reclaimers use "bucket wheels" for

removing material from the pile they are reclaiming.

7. Shiploader

A Shiploader is a huge machine used for loading bulk solid materials like iron ore, coal,

fertilizers, grains into marine vessels for transportation by sea. It mainly consists of

an extendable arm or boom, a belt conveyor and a mobile structure to support the boom.

Illustration 12: A shiploader loading a hatch of the vessel

It is usually mounted on rails and sometimes on tyres and can move in order to be able to

reach the whole length of the ship. The boom also can move front and back, up and down by

separate drives so that it can fill all the corners of the ship holds.

23

14. Iron Ore Handling Facilities at Mormugao Port as compared to other

iiiiiMajor Indian Ports

Illustration 13: Summary of Iron Handling Facilities at Major Ports

24

15. Operation cycle at MOHP

The structure at unloading point: There are 5 finger jetties with 4 jetties having 2 Grab Barge

Unloaders (GBU) each and the 5th

one is having a Continuous Barge Unloader (CBU).

The continuous barge unloader is faster but cannot handle certain grade of iron ore.

The unloading of ore at Ore handling plant (OHP) in Goa, India is done with wire rope

operated grab un-loader. The grab used for barge unloading is Smag /Scissor type. This grab

weighs around 8tons with shell assembly and saddle with chain links. It is operated with the

help of hold/close wire ropes 2 nos. each. There are winch drums for hold/close and wire

ropes are separately powered by 250 KW gearboxes.

These pick up ore from the barge and drop it in the hopper which is then transferred to the

conveyor belt and through the system of conveyors is fed to the stacker which stacks the iron

ore on the stockyard.

The stockyard is divided into 3 parts sea side plot, middle plot and landside plot.

Illustration 14: Schematic Diagram of the Stockyard

There are 3 stackers, one in between the land side and middle plot and second between the

sea side and middle plot and the last one is on the other side of the sea side plot. The first one

can stack the ore at any of the plots on the middle plot and the land side plot, second one can

stack it on any of the plots on the sea side plot or middle plot and the third one can stack only

on the sea side plot.

A maximum of 3 unloaders can feed one stacker.

25

There are 3 streams i.e. a system of conveyor belts and a stacker, which can carry 3 grades of

iron ore from different exporters without contamination.

There are 2 reclaimers to transfer iron ore from stockyard to the vessel. One the reclaimer is

between the middle plot and the land side plot which can retrieve the iron ore from any of the

plots on land side or middle plot. From the reclaimers the iron ore is loaded into the vessels

by loaders which get the iron ore. From the reclaimers the iron ore is loaded into the vessels

by loaders which get the iron ore from the reclaimers through conveyor belts. There are 2

loaders which can load the ship at the same time.

26

16. Mining in Goa

16.1. Brief Description of the Mining Industry in Goa

•The mining belt of Goa covers an area of approximately 700 sq km and is mostly

concentrated in the four talukas of Bicholim,

Salcete, Sanguemand Quepem.

•Mining (especially of iron-ore) along with

tourism is an important industry and the state

exports over 60 per cent of country‘s iron-ore

(45.9 million tonnes in 2008).

•Most mines in Goa are of the open-cast type,

which necessitates the removal of over-burden overlying the iron-ore formations.

•Iron, manganese and bauxite ores are the major minerals found in Goa.

16.2. Overview

Mining has been a very important element in the economic history of modern Goa and a

significant foreign exchange earner for the state. Recently, it has been designated as the

industry at par with tourism.

Illustration 15: Investment Climate of the State with regard to Mining

27

It has provided the trigger to boost economy of the mining talukas. Certain natural factors

like the presence of coastline, a very good natural harbour at Mormugao and a number of

navigable perennial rivers have promoted the economic exploitation of mineral deposits.

Transport of ores by barges is the cheapest option as compared to road and rail transport.

Goa is a major iron ore exporting state and over 40% of Country's iron ore export is from

Goa. In terms of foreign exchange earnings it amounts to nearly Rs.2000 crore per annum.

Mining in Goa is done by open cast method which 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 a tone of iron ore. The average annual production of iron ore is

about 15 to 16 million tonnes, in the process removal of which about 40 to 50 million of

mining waste is generated. Such a huge quantity of mining waste creates a problem for its

storage thereby causing severe environmental pollution.

16.3. Mining Belt of Goa

The mining belt of Goa covers approximately 700 sq. km and is mostly concentrated in four

talukas namely, Bicholim of North Goa district and Salcete, Sanguem and Quepem of South

Goa district. Mining and associated activities have greatly affected the natural landscape in

and around these areas, which is characterized by the presence of pits and waste rejects.

The mining belt of Goa is divided into three regions based on the concentration of the iron

ore, namely, Northern, Central and Southern Zone. Usgao River is the dividing line for

northern and central zone and Sanguem River between the central and southern zone. The

maximum area under mining is in Sanguem Taluka followed by Bicholim, Sattari and

Quepem.

16.4. Operation mechanism

In Goa, opencast type of mining techniques is used to extract iron/manganese ores. It is

carried out by forming systematic benches on the hilltop and along hill slopes and the pits are

laterally extended in stages in all directions with increasing depth. In general, bench height

and width are maintained at 7m and 10m respectively. The pit configurations are planned in

such a way that the overall pits slopes remains at 30 degree or less with the horizontal.

28

Sequence of mining operation involves -

a. Systematic removal of lateritic overburden. Soft Laterite is removed by dozing and

ripping. Drilling and blasting is practiced in hard and compact Laterite

b. Extraction of lumpy ore zone followed by powdery ore zone.

c. Wet or dry processing of the mined material so as to attain the desired cut-off grade of

the iron ore. (i.e. 62% of iron) for export purpose.

16.5. Impact on Environment

Mining has also created a degraded environment and is also a matter of concern. Damage to

the environment is mainly done by the reject dumps, pumping out of muddy waters from the

working pits including those where the mining operations have gone below the water table,

and slimes from the beneficiation plant. The damage is more evidenced during monsoon

where the rain water carries the washed out material from the waste dumps to the adjoining

low-lying agricultural fields and water streams. It is stated that the slimes and silts, which

enter the agricultural field are of such character that they get hardened on drying. The washed

out material from the dumps and the flow of slimes from the beneficial plants besides

polluting the water causes Siltation of water- ways, especially during monsoon. Such silting

of water ways over the years may trigger years even flooding of the adjacent fields and

inhabited areas, especially during monsoon.

Several major environmental problems caused due to mining operations are as under:

Deforestation

Land degradation

Groundwater pollution

Surface water pollution

Dust pollution

Damage to beaches

29

17. Company Profiles of Major Players in Iron Ore Mining

Illustration 16: Brief about the 4 Major Iron Ore Mining Companies

30

18. Factors supporting Iron Ore Mining in Goa

Goa Iron ore Goa besides its popularity as a tourist destination is famous for its mining

industry that largely comprises of iron and manganese ore mines. Goa has earned the status of

the largest exporter of iron ore in India. The Goan iron ore deposits have been a source of

iron ore to the steel industry, for different countries across Asia and Europe notably, Japan,

China, Korea, etc. The Goan iron ore is normally of iron content of 58%-63% and used as a

blend with high-grade ore. The iron ore exports comprise of fines as well as lumps.

Processing of the ore normally comprises of crushing to meet the requisite size specification

and/or washing to remove the impurities as well as upgrade the iron content to the specific

buyer requirement. Magnetic processing is also utilized to upgrade the iron ore.

The advantage of the Goan mining industry has been the network of rivers that connect the

mines with the natural port that provides a cost effective and efficient mechanism to transport

the ore besides the abundant reserve of iron ore deposits. The recent demand for iron ore

from China has seen a boom in this industry that has seen large inflow of investment in

processing plants and handling facilities as well as new entrants. The major players in the

Goan iron industry are Sesa Goa, Chowgules, Salgaocars, Dempos, Fomento and the

Timblos.

Mormugao Port in Goa currently more than 50% of ore loading is done through Berth No: 9,

Mormugao Port. The rest is through Transhipper harboured within the Port limits of

Mormugao & Panaji Port, Manual Mid-stream loading. Mormugao Port is a natural harbour.

It may be considered a mono Port, as 85% of the cargo handled is Iron Ore. Berth No: 9 is

exclusively allocated for handling Iron Ore. It is a noteworthy fact that the Goan exporters are

the major contributors to the flourishing of these ports.

The Mormugao Port offers a wide range of standard facilities for pilotage, towage, lighterage,

bunkering, loading, unloading, transit sheds, warehouses, freighting, medical aid and supplies

etc. The most specialized services for ore handling are provided. Repair and service facilities

are available at Goa Shipyard, Government of India Undertaking, and at other specialised

private firms. Mormugao port has a mechanical ore-handling complex. At present the limited

draft at Berth No: 9, permits the loading of only Panamax size vessels. However the Cape

size vessels can be up topped upto 200,000 tonnes or more by transhippers (loading vessels),

31

which are owned and maintained by the exporters. The transhippers thus play a

complementary role in the port's operations and help raise Mormugao port to international

standards.

Panaji Port is a minor port. Loading at this port is done with the help of transhippers. The

congestion at Mormugao Port Trust is thereby reduced due to the introduction of Panaji Port.

The loading capacity is approximately 25000 tons per day. Transhippers Since the draft

available at Mormugao Port is limited; the Goan exporters have also invested in transfer

vessel to uptop balance quantity, thereby enabling even larger capesize vessels to call on the

Port. Currently, there are six transhippers operating within the Goan coast:(a) Maratha Deep

(b) Swati Rani (c) Priyamvada (d) Sunrise (e) Orissa (f) Satisha(g) Goan Pride Due to these

transhippers, vessels of more than 200,000 DWT can be easily loaded at an average output of

around 20,000 ~ 25,000 tons/day per transhipper. Goa is, thereby able to export an average of

15 million tons due to the complimentary services provided by these transhippers. On an

average, around 35 ~ 40% of the total exports from Goa is loaded by transhippers.

The Largest Iron Ore Vessel that has called in Goan Ports is M.V.Alster Cove, which was

300,000 DWT.

32

19. Iron Ore Mining Areas in the state of Goa

Mining in Goa started during the Portuguese period. However, the process underwent

modernization only after independence. Most of the mines are in private hands. They were

leased out by the Portuguese authority in pre-liberation days, and inherited by the present

owners.

Iron ore, manganese, bauxite, high magnesia, limestone and clay are the chief minerals of

economic importance found in Goa. The mining industry in Goa provides employment to

about 11,000 persons directly and about 10,000 persons indirectly.

The land away from the coast is rich in minerals and ores and mining in Goa forms the

second largest industry. Mining in Goa focuses on ores of iron, bauxite, manganese, clays,

limestone and silica.

The iron ore industry is the main industry of mining in Goa. It also forms the backbone of

Goan economy.

Illustration 17: Minerals Map of Goa

33

The iron ore deposits of Goa are essentially of hematite and are associated with the

ferrogenous quartzite and phylites. Mining is both manual and mechanical employing open-

cast method.

The deposits containing an average Fe content of 63% by and large are concentrated in

North-North West, South-South East directions from North to the South - occupying nearly

1/5th area of the total territory.

The main iron ore bearing zone is divided into four separate areas by major faults. These

areas are:

Bicholim - Pale area

Sancordem area

Shigao - Kalay area

Sanguem - Quepem area.

34

20. Types of Iron Ores found in Goa

Haematite and magnetite are the most prominent of the iron ores found in India. Of these,

haematite is considered to be the most important Iron ore because of its high grade quality,

which is consumed in a number of steel and sponge iron industries. Indian deposits of

haematite belong to pre-Cambrian iron ore series and the ore is within banded iron ore

formations occurring as massive, laminated, friable and also in powdery form. The major

deposits of iron ore are located in Jharkhand, Orissa, Chhattisgarh, Karnataka and Goa States.

Illustration 18: Characteristic of Important Haematite Deposits in Goa

20.1. Typical Specification Iron Ore Fines

GOA

GRADE (Fe) % Basis 56 57 58 59 60

Si O2 % 7 7 7 6 6

Al2 O3 % 5 5 4 4 4

Phos % 0.08 0.08 0.06 0.06 0.06

Sulphur % 0.05 0.05 0.05 0.05 0.05

Free Moisture Loss at

1050C

10 10 10 8 8

Physical Composition 150

micron to

10mm

150

micron to

10mm

150

micron to

10mm

150

micron to

10mm

150

micron to

10mm

Oversize% (Max) 5 5 5 5 5

Undersize % (Max) 30 30 30 30 30

Illustration 19: Content of Iron Ore Fines Gradewise

35

20.2. Typical Specification Iron Ore Lumps

GOA (Only during Monsoons)

GRADE(Fe) % Basis 58 59 60

Si O2 % 4 4 4

Al2 O3 % 3 3 3

Phos % 0.06 0.06 0.06

Sulphur % 0.05 0.05 0.05

Free Moisture Loss at

1050C

7 7 7

Physical Composition 6mm to 40mm 6mm to 40mm 6mm to 40mm

Oversize% (Max) 10% 10% 10%

Undersize % (Max) 20% 20% 20%

Illustration 20: Content of Iron Ore Lumps Gradewise

36

21. Case Study: Study of Operations of SESA-GOA

21.1. Overview

Sesa Goa Limited is part of the Vedanta Group, a diversified global metals and mining major.

It drives the Group‘s ferrous minerals business with a commitment to create a world class

enterprise with high quality assets, low cost production and superior returns to stakeholders.

Sesa Goa is India's largest producer and exporter of iron ore in the private sector. For over

five decades it is engaged in the business of exploration, mining and processing of iron ore.

In fiscal 2010, it produced 21.4 million tonnes and sold 20.5 million tonnes of iron ore. It is

one of the low cost producers of iron ore in the world and is well placed to serve the growing

demand of Asian countries

Sesa Goa, over the years has created ‗Sesa‘ brand of iron ore which caters primarily to the

rapidly growing emerging economies of India and China. While this is true across the Sesa

Group‘s and the Company‘s different business segments.

With over 80% of its sales in China, their Iron Ore business is focusing on mining different

grades of ore in India and is exported mainly to China. With its cost competitive ore base and

mine locations having relatively good accessibility to China, Sesa Goa has a niche

positioning in the Chinese sea-borne iron ore business.

21.2. SESA-GOA‘s Acquisition of Dempo

In June 2009, Sesa Goa signed a definitive share purchase agreement under which the

Company acquired all the outstanding common shares of VS Dempo and Company Private

Limited (‗VSD‘ or ‗Dempo‘), which in turn, also held 100% equity shares of Dempo Mining

Corporation Private Limited and 50% equity shares of Goa Maritime Private Limited. The

deal was signed for a total consideration of Rs. 1,750 (equivalent to US$368 million), on a

debt-free and cash-free basis, and included net normative working capital of Rs. 145 crore

(equivalent to US$31 million). The acquisition was wholly financed by Sesa Goa‘s own cash

resources.

With this acquisition, the Company got access to VSD‘s mining assets in Goa. VSD either

owns or has the rights to mineable reserves and resources estimated at 70 million tonnes of

37

iron ore in Goa. In addition, VSD‘s mining assets in Goa includes processing plants, barges,

jetties, transhippers and loading capacities at Mormugao port. In 2008-09, VSD sold 4.36

million tonnes of iron ore, which included its own production and purchased ore.

Not only has the acquisition added to Sesa Goa‘s resources but has also given the Company

access to VSD‘s customer base. At the time of acquisition VSD was one of the largest

exporters of iron ore from Goa with exports of around 4 million tonnes.

During the course of the year, Sesa Goa has already started leveraging several synergies

between the two Companies. These include:

Exploration: With Sesa Goa‘s focus on exploration, impetus has been given to

understand the resources at Dempo, and a composite exploration plan has been

worked out.

Mine planning and operations: With a central planning cell, the focus is on optimizing

resources in all mines, particularly those with the same ore-body.

Processing and grade optimisation: Process flows at Dempo mines are being reviewed

to increase recovery.

Logistic (land and river fleet operation): With both companies having mines and river

jetties in close vicinity, efforts are on to rationalize transport, with a view to reducing

unit costs, increasing throughput and improving logistic efficiencies.

Port operations: The acquisition has resulted in additional stacking capacities and

optimum utilisation of Dempo‘s transhipper

Centralisation of common services: This includes integration of functions like

marketing, HR, procurement, mine planning, logistics, etc.

21.3. Iron Ore Mining by SESA-GOA in Goa

SESA-GOA‘s Goa operations consist of two major iron ore mining areas, one in Codli

village (in South Goa District) and the other in Sonshi village (in North Goa District). In

38

addition, they derive our ore production from Sesa Resources mines and several satellite

mines in North Goa and South Goa.

21.4. Major Mines in Goa owned by SESA-GOA

1. Codli Group of Mines

Key Facts:

Location: Codli Village, 50 kilometres east of Panaji, Goa, India.

Mining Type: Open Cast

Products: Iron Ore fines

Ore Production Capacity: 7.0 mtpa

Certifications: ISO 9001:2008, ISO 14001:2004,

OHSAS 18001:2007 & 5S

Overview: Codli is the largest iron ore producing mine of Sesa Goa with a current production

capacity of more than 7.0 mtpa.

Background Information: Codli mine first commenced production in 1973; Progressive

increase in the production at the mine reached 3 mtpa by 1995. Codli is situated in South

Goa, approximately 50 kilometres east of Panaji, the capital of Goa. Codli group of mines are

open-pit operation, multi-pit, multi-lease fully mechanised mining units.The nearest railway

stations, Sanvordem and Margao, are approximately 13 kilometres and 40 kilometres,

respectively, from the mine. The river loading points at Sanvordem and Capxem are

approximately 12 kilometres and 14 kilometres, respectively, from the Codli mines while the

port is approximately 40 nautical miles from the river loading point.

Processing: They have extensive ore processing facilities for upgrading the ore, which

include crushing, dry screening, scrubbing, log washing, classifying, hydrocycloning, and

magnetic separation with ultra fines recovery. They have four processing plants with a

throughput capacity of 10 mtpa. One plant is provided with a dry circuit to process high grade

ore, while the remaining three wet plants process low grade ores. Codli processing plants

undergo regular maintenance and annual repairs, which are normally conducted during

monsoon seasons.

Logistics: Both processed and unprocessed ore is transported by road to a riverhead jetty by

39

10 tonne tipper trucks and then further transported by barges to the Goa ports or transhipper

for onward shipment.

2. Sesa Resources Mines

Key Facts

Location: Sesa Resources Mines, Goa, India.

Mining Type: Open Cast

Products: Iron Ore fines

Ore Production Capacity: 4.0 mtpa

Certifications: ISO 9001 & ISO 14001

Background Information: Bicholim and Surla mine first commenced production in 1958;

Increase in the production at Sesa Resources mines reached 4.0 mtpa. Sesa Resources mines

are situated in Goa. All Sesa Resources mines are open-pit operation and are fully

mechanized mining units.

Processing: Sesa Resources has got a very extensive ore processing facilities for upgrading

the ore, which include crushing, dry screening, scrubbing, log washing, classifying,

hydrocycloning, and magnetic separation with ultra fines recovery. The processing plants

undergo regular maintenance and annual repairs, which are normally conducted during

monsoon seasons.

Logistics: Both processed and unprocessed ore is transported by road to a riverhead jetty by

10 tonne tipper trucks and then further transported by barges to the Goa ports or transhipper

for onward shipment.

3. Sonshi Mines

Key Facts:

Location: Sonshi, 35 kilometres from Panaji, Goa, India.

Mining Type: Open Cast

Products: Iron Ore fines

Ore Production Capacity: 3.0 mtpa

Certifications: ISO 9001:2008, ISO

14001:2004, OHSAS 18001:2007

40

Background Information: Sonshi mine first commenced production in 1958; Progressive

increase in the production at the mine reached to the current level of 3.0 mtpa. Sonshi is

situated in North Goa, approximately 34 kilometres from Panaji, the capital of Goa. Sonshi

mine comprises of an open-pit mine and it is fully mechanised mining unit.

The nearest railway station, Tivim is approximately 25 kilometres, from the mine. The river

loading point Amona is 9 Kilometres from the mine while the port is approximately 35

nautical miles from the river loading point.

Processing: At Sonshi they don't have an extensive processing plant onsite; instead the

extracted ore is transported by road to the processing plants at Amona (approximately nine

kilometres away) and at Cudnem (approximately six kilometres away). The combined

throughput capacity of the processing plants is 4.2 mtpa. The processing plants at Amona and

Cudnem undergo regular maintenance and annual repairs, which are normally conducted

during monsoon seasons.

Logistics: The processed and unprocessed ore is transported by road to a riverhead jetty by 10

tonne tipper trucks at Amona Jetty and then further transported by barges to the Goa ports or

transhipper for onward shipment.

4. Other Mines

In addition to Codli, Sonshi and Sesa Resources Mines, they also derive iron ore production

from several satellite mines in North Goa and South Goa.

21.5. Performance of SESA-GOA

Sesa Goa primarily caters to the global steel market, and being a core industrial product, steel

consumption has a strong correlation with

economic growth.

Record iron ore production of 17.8 million tonnes

from Sesa Goa‘s standalone operations.

With the integration of Dempo‘s operations with

Sesa Goa, another 3.6 million tonnes of iron ore

production was added over a period of Illustration 21: Total Iron Ore Sales by SESA-

GOA over Last 5 Years

41

approximately ten months taking consolidated iron ore production to 21.4 million tonnes – a

significant increase of 34% over 2008-09. There were all time high productions of iron ore

(21.4 million tonnes).

Through its exploration activities, there was a net addition of 43 million tonnes to its iron ore

reserves and resources, post depletion of 21 million tonnes of saleable iron ore production.

Illustration 22: Statewise Production of Iron Ore by SESA-GOA(in million tonnes)

Over the last five to seven years, given the lower cost structures, global steel production has

been shifting away from developed countries to emerging economies, particularly China.

Sesa Goa caters primarily to the rapidly growing emerging economies of India and China.

With over 80% of its sales in China, this business is focusing on mining different grades of

ore in India and is exported mainly to China. With its cost competitive ore base and mine

locations having relatively good accessibility to China, Sesa Goa has a niche positioning in

the Chinese sea-borne iron ore business.

42

22. Conclusion

Mormugao Port, GOA is the premier iron ore exporting Port of India with an annual

throughput of around 26.74 million tonnes of iron ore traffic. The Port accounts for about

forty percent of India‘s iron ore export. Though ore is the predominant cargo, there has been

a steady increase in liquid bulk and general cargo traffic ever since it‘s joining the ranks of

the Major Ports of India.

Excellent facilities, high productivity, streamlined administration and a dedicated workforce

all go towards making this Port one of the most efficient Port in the Indian subcontinent.

With all these attributes, Mormugao Port, GOA has tremendous potential to cater to the needs

of trade and industry and to contribute to the economic development of the Nation.

The most important factor contributing to the phenomenal growth of traffic of this port is the

excellent inland water-ways system made up of the two main rivers of Goa viz. ‗Zuari‘ and

‗Mandovi‘, and the ‗Cumbarjua Canal‘, which serve this port. This inland water-ways system

has been used to bring ore most economically from the mines to the Harbour. Though the

‗Golden Gateway‘ has put Goa on the international map with its massive cargo capacity

handled.

Goa is a small state on the Western Coast of India. Gifted with nature's bounty & a chequered

historical background, Goa is a very attractive place.

Goa, also has the credit of having pioneered the exports of iron ore from India. Goa exports

46.00% of India's Iron Ore. The 2009 iron ore exports being 53.13 million tonnes per annum.

A fair share of the country‘s iron ore deposits is available in Goa. Although of low iron

content, the ore is made marketable by processing. Ore is exported in the form of lumps, fines

and pellets. The proximity to a natural seaport with modern amenities adds to its advantages.

Mormugao Port has lived up to its original description of being a ‗golden gateway‘ of Goa.

The State of Goa over the last 40 years has experienced an unprecedented growth of

population through the influx from neighbouring States of India. The ‗Golden Gateway‘ port

must take into consideration the competitive environment, both nationally and internationally,

for continued growth and further development of the port itself and that of Goa.

43

23. Bibliography

http://www.gmoea.com/

Industry Report—Shipping and Ports(ICRA Research Analysis)

Maintenance analysis: a case in ore handling plant

Sakhardande, M. J, Bhatkar, S., Mariappan, V and Prabhu Gaonkar, R

Handbook:Mormugao Port

http://www.mptgoa.com/

Dimel Roy, Ports in India

http://www.sesagoa.com/index.php?option=com_content&view=article&id=55&Item

id=62

www.mapsofindia.com/maps/goa/goaminerals.htm