Goa’s ban on iron mining

India’s Goa state, which exports more than half the nation’s iron ore, banned all mining after a panel of experts said the province’s government lost an estimated 349.4 billion rupees ($6.3 billion) because of illegal mining.

Trading and transportation of minerals that have already been mined will be allowed after scrutiny, according to the Goa government’s statement. The ban could have an impact on global supplies and prices of iron ore should it continue for some time, said R.K. Sharma, secretary general at the Federation of Indian Mineral Industries. “We’ll have to cut our forecast if the ban continues,” Sharma said today in a phone interview. “Goa has some inventory, so there may not be an immediate impact.”

Iron ore with 62 percent metal content at China’s Tianjin port was $95 a ton on Sept. 10, down 31 percent this year (Bloomberg). The ban is likely to affect share prices of companies in the sector too.