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PrintIndia's Goa state temporarily halted iron ore mining from Tuesday to check if operations were legal, a move that is expected to further dent exports from the country and support flagging global prices.
Shares in miners, such as Sesa Goa Ltd and Sterlite Industries, fell more than 5 percent on worries over cuts to output and exports by India - the world's former No. 3 supplier of the steelmaking ingredient.
India's iron ore exports, which mainly head to China, have already halved because of government taxes aimed at keeping output for the domestic steel industry and efforts to stop illegal mining.
Tumbling global prices, down a third since July and now near levels last seen in 2009, have also deterred exports.
The move by Goa to suspend mining activities came after an expert panel formed by the federal government found "serious illegalities and irregularities" in mining operations.
State officials in Goa, India's second-biggest iron ore producer which normally supplies about 50 million tonnes a year, said the inquiry could take several weeks while industry sources suggested it might be months.
"We are trying to do it with priority and we will expedite everything," said Prasanna Acharya, director of mines and geology in Goa's mines department, declining to give a time frame for the checking process.
The state will set up a committee to review mining before giving approval to resume operations. Iron ore already produced or stored at ports can be moved, the government said in a order late on Monday.
"Our contacts in India say they expect this to last not more than one to two months," said Graeme Train, commodities analyst at Macquarie in Shanghai. "As soon as the mines show that they have all the permits then they can just start producing again." （Source; Reuters）
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