Goa sponge iron making units hit as neighbouring state bans supply of ore

IBN Live News reports at least six industrial units manufacturing sponge and pig iron in Goa have been hit after neighbouring Karnataka imposed ban on transport of iron ore, a key raw material for making sponge iron that the Goan companies source from Uttar Kannada.

District administration of Uttar Kannada, bordering Goa, through a notification clamped a ban on movement of iron ore outside the state on June 14 which will continue till September 30, 2011.

IBN Live News reports:

Goa Chamber of Commerce and Industry (GCCI) President Manguirish Pai Raiker told PTI that they have already started negotiations with the Karnataka government as in the absence of raw material, all six units would need to shut their shop. “There is a mutual benefit involved in getting the raw material from Karnataka. The iron ore from Karnataka is processed at these plants in Goa and the sponge or pig iron is sent to steel plants in Karnataka, which is a raw material for them. We do value addition here and do not export it,” Raiker explained.