India's Controversial Iron Mining Boom

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First published in Sanctuary Asia, Vol. 31 No. 11, November 2011

Far into the distance, its forested hills are scarred by giant mining pits, some hundreds of metres deep.

An army of machines claw at the sides, digging out iron ore to feed Goa's mining boom.

It is not for India though - despite its huge need for steel - but for export, with most of it going to China.

This is a goldrush for a globalised age.

But Goa's mining business is now having to dig in itself: It is the latest target of India's anti-corruption drive, with a government commission due to report soon on allegations of widespread abuses.

Some critics are calling for the industry to be closed down.

Bumper profits

The controversy is also prompting questions over how India is managing its mineral reserves - when it has such urgent needs to upgrade its own infrastructure.

But when Beijing won the 2008 Olympics, China's surging demand for steel was too good an opportunity for Goa's iron ore industry to miss.

And Indian steelmakers so far have not developed the technology to handle the lower grade ore found in the state.

But with bumper profits from China have come charges of rampant over-mining, environmental devastation and widespread corruption.

The Indian media accuse local Goan officials of turning a "Nelson's eye" to it all, with headlines like "Pits of Corruption".

It could have a political toll, with the state under the sway of India's ruling Congress party.

Activists claim dust and other pollution from mining operations is causing breathing difficulties in local children.

At the Taraada Surla primary school, children play just feet away from trucks carrying iron ore from the mines.

A red hue from the dust soon clings to their uniforms - the clothes paid for by one of the local mining companies. Read the full report here.

Source: by Andrew North,  BBC South Asia Correspondent, BBC News, Pissurlem, Goa.

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