Goa clamps down on illegal iron ore exports - paper

A labourer works in an iron factory on the outskirts of the southern Indian city of Hyderabad May 13, 2010.

NEW DELHI (Reuters) - Goa has decided to clamp down on exports of illegally mined iron ore, The Economic Times newspaper reported on Monday quoting state chief minister Digambar Kamat.

Official documents show that in the past five years more than 8 million tonnes of iron ore had been unlawfully exported from Goa, the report said.

"We have asked for total export data of various companies. This will be tallied to (with) royalties paid," the report quoted Kamat as saying.

"If any company is found selling iron ore illegally, their vessels will not be allowed to leave (the) port unless previous dues are cleared."

Goa is a major exporter of iron ore fines, most of which is bought by China that houses the world's largest steel industry.

The state exports approximately 45 million tonnes of the commodity a year, some of which comes from neighbouring states, trade sources say.

Last week, southern Karnataka's chief minister B.S. Yeddyurappa said he was taking steps to stop the exports of iron ore in a bid to check illegal mining.

Any disruption in supplies of iron ore from India could harden prices and make China turn to Australia, Brazil and other countries for its supply.

(Writing by Ruchira Singh; editing by Malini Menon)

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