This Article is From Nov 08, 2011

Goa: Land Mines

Goa: Land Mines
The state of Goa has emerged the latest epicenter of links between political corruption and mining violations, drawing comparisons with Bellary, and speculation that its beleaguered Chief Minister Digambar Kamat could go the way of Mr. Yeddyurappa.

Goa: That may well turn out to be the case, but it means understanding the roots of the current crisis - which lie in Goa's distinct history of mining iron ore, and in the extraordinary political interest in mining, interest so deep that it has profoundly compromised the state's official machinery meant to monitor, and if needed act against violations.

Since the time of the Portuguese, mining has been intricately linked to life in Goa. When two of Goa's best known football clubs - Dempo and Salgaocar - play each other, no one thinks of them, as clubs owned by Goa's oldest mining companies, which they are.



The first Chief Minister of independent Goa, DB Bandodkar, was a mine owner.

But in 2007, backed by Chinese demand - the price for the low grade iron ore produced in Goa jumped from around 65 $ a tonne, to around 170$ a tonne in just a year.

And Goa's legacy of mining was overturned with devastating impact.

Our journey began on the edges of the forested town of Rivona, is mine number 28/52. On paper it is owned by the old mining firm of Shantilal Kushaldas. But its real owner is Anil Salgaocar, of the Salgaocar mining family, and currently the powerful independent MLA supporting the ruling combine.  

Inside the mine, we come across an even deeper political link. The watchman at the mine told us that, "Salgaocar ka mine hai, Joaquim chalata hai." (Salgaocar owns the mine but Joaquim runs it)

The mine is operated by Goa's Minister for Urban Development, Joaquim Alemao, who like Anil Salgaocar has been a mining player for years - and like Salgaocar perfectly positioned to ride the mining boom.    

He has supplied equipment to mine owners from his company Raisa Minerals - named after his daughter - for the past two decades.

Many say during the boom, Joaquim became the go to contractor. Claude Alvares, Director of Goa Foundation, "He owns all this heavy equipment so if you want to do illegal mining, what would you do? You don't go and buy equipment because it may get taken away. So you borrow it from Joaquim Alemao because there is no chance that anybody will take away his equipment."

Alemao on the other hand claims, "I am only a seedha saadha contractor."

An iron ore mine, run by a MLA and operated by a sitting minster epitomizes the deep political interests in mining.

Also in Rivona is another heavily guarded mine, on paper owned by one Mr. Haider Kassim Khan, operated through a power of attorney by Minescape Earthmovers, the firm of Congress politician Dinar Tarcar.

This was corroborated by the guard at the mine, " Yeh hai Haider Kassim Khan ka. Minescape is Tarcar." (This mine is Haider Kassim Khan's but Minescape belongs to Dinar Tarcar.)

A builder by profession, Dinar is a new entrant in Goa's tribe of politician - miners, an entry many allege smoothened by his closeness to the Chief Minister; allegations which he refused to answer on camera.

Dinar and Joaquim are what are called Raising Contractors - they operate mines that belong to those who hold leases from the time of the Portuguese, many of them individuals with no mining experience or resources. Like all old mining practices in Goa it has exploded in the boom - it's raised worries of proxy mining - that many of these leaseholders have subleased their mine without the permission of the Government.

In 2000, only 11 mining companies exported ore from Goa. Last year, that list jumped to a whopping 92 companies.

Tracing the origins of those companies, and the contracts many say would cut to the heart of violations and expose the political links.

But instead the Chief Minister, who has been the Minister of Mines for 11 years says, they have no knowledge or even desire to probe these contracts - the first of many such answers.

When confronted about the issue of raising contractors, Digamber Kamat shrugged it off saying, "As far as Directorate of Mines are concerned, they normally always deal with the lessee. If lessee has some understanding with somebody and if he allows them to work, it is based on their understanding."

Parrikar disagrees, "You talked of transfer of mines by raising contracts. The issue was raised on the same in the Assembly here just before elections. He had no answers to it. He should have climbed down the next day."

With the report of the Public Accounts Committee headed by Opposition leader Mohan Parrikar adding to the pressure, the mining department has admitted that just  last year alone, 5 million tonnes of ore was exported out of Goa's ports, without paying royalty to the Government.

The first miner to admit to illegally exporting ore is ironically, a politician - Anil Salgaocar.

As the heat intensifies on mining violations, Salgaocar has admitted to the state mining department that he exported about 1.2 million tonnes of iron ore in the past year without paying royalty. It now remains to be seen whether the department will simply fine him for the dues of approximately Rs. 30 crores, or take stronger action.

Claude Alvares adds, "Anil Salgaocar mines have been officially recorded as illegal by this monitoring committee appointed by the Goa Government but nothing happens to him. He is after all an MLA and he is the one seat adjudicating whether the Government can survive or not."

Where the government has failed to act against politician miners, local activism has stepped in. We were taken to see the now defunct Ashnidungar mine, deep in the Colomba reserve forest in South Goa's mining belt.

Moteshanto, a farmer and an activist from the Colomba village took us to the site, well hidden inside the jungles. He told us, "Salgaocar owns the Ashnidungar Iron ore mine."

Once run by Anil Salgaocar, its closing down is a rare victory for anti-illegal mining activism.

Moteshanto says, "There is a forest here. So we protested and it was closed down."

The intense focus on mining and politics has brought to the surface fresh links. Even the head of the Goa Pradesh Congress Committee, Subhash Shirodkar, says he has an old, humbler link with the mining.  

He says, "My mother used to go for head loading of railway wagons. She used to carry me along with her and then make me sit underneath the station wagon and that was I think at the age of 4. I remember it very clearly."

He has now converted this into a successful business. He adds, "I started a small transport business, Vasundhara Minerals. We are 3 partners, today I have got 4 trucks in my name and another 3 trucks and then another 2 trucks in the name of my another brother. So right now we have a fleet of about 15 trucks and one machine."

He also admitted to supplying to mining baron, Anil Salgaocar, saying "sometimes for Anil Salgaocar, sometimes for other miners also."

Apart from the issues of legality, when we asked if these intertwined links between politics and mining are ethical - the answers ranged from surprise, to denial to even indignation.

Digambar Kamat said, "as far as legality is concerned, I personally do not think there is anything wrong with it."

GPCC President Subhash Shirodkar defended himself saying, "To me personally if you ask me I have seen to it these activities have remained away from entire political career of mine."

While Joaquim Alemao fought back saying, "If I cannot work as a contractor, then I don't know. I am a citizen of India. How will I live? Business comes first for me. My children are growing. Without business I cannot stay in politics. I am not making anything in politics. I am for the people."  

Compared to Goa's biggest mining firms, Goa's politician miners - both new and old are small players in terms of output.  But their combined political influence many say has weakened the mandate of its mining department to monitor the unchecked growth of Goa's mining sector, and if needed act against it.

In a building in Panjim, we witness the sum total of the mining department - just 14 technical officers to monitor an industry that exported over 50 million tonnes of iron ore last year.

It has meant that mining in Goa is left to the miners to self-regulate - raising worries that the same violations politicians can get away using influence. Goa's bigger players can get away because of sheer size. Or in some cases, both.

At the Shigao Mine of Fomento Resources, Ambar Timblo, Managing Director of the company told us, "We've had a fairly good reputation as far as being in the industry is concerned. We've never had serious crises of confidence or reputation that the industry is facing now, all over India now trickling down to the state of Goa."

Ambar Timblo is the next generation of the Timblo mining family. His father, Audooth is said to be very close to the Chief Minister. He however says, "I think sometimes when you are growing and when you have to build on your business, when you're expanding your operations and creating economic value etc, I think the easiest thing to say is the only reason a person can do this is because of political patronage. And that's unfair. I think that's unfair."

Their company Fomento Resources, is Goa's second largest mining company and has witnessed explosive growth. According to the data on the company website, their production has gone up from over 6 to 16 million tonnes of ore in just a year.

Most of this is through raising contracts - leases held by others, mined by Fomentos. Ambar maintains that this is not a front and that all the owners are actually involved as well, "I can't speak for all the industry and specific but I can speak in our case. We've got a strong equation with the families and they're involved very much in the activities that we're conducting."

But there is no way of verifying - given the lack and scale of oversight.

On being asked when was the last time any monitoring body came to the mining site, Ambar said, "I wouldn't have the exact details." We then asked the onsite engineer who said, "This particular mine was last inspected by Indian Bureau of Mines and 3 and a half months back. From time to time other statutory authorities like the Directorate General of Mining Safety and all people come and they check some of the records."

Goa's biggest mine and mining firm, however is not owned by a politician but by Vedanta, run as Sesa Goa.

If the Timblos face heat because of their alleged influence, Sesa - because of its sheer size.

Of a list of roughly 7 mining companies that have exceeded capacity last year - Sesa is shown to have gone over by about a million tonnes.

Deputy COO of Sesa Goa's Iron ore operations, Sauvik Majumdar said, "We have not gone above capacity in any mine."

In the scale of violations - this may seem minor - Sesa exported around 16 million tonnes last year.

But it points, once again - to the absence of regular scrutiny.

Speaking on the last time any authority came to check Sauvik said, "I think the last visit was from the Directorate of Mines Safety which was just 15-20 days back."

Sesa - like all mining companies in Goa - are keen to underline responsible mining rather than scale of output.

Speaking on it, one of the onsite engineers said, "All this area is a dump, where we have dumped it over there and we're afforesting. The entire plantation that you see is on our dumps, earlier mined and kept aside."   

Later they took us to the nearby village Panchayat office right at the entrance of the mine where the former Sarpanch admitted Sesa had helped them. He said, "They construct schools, pay the fees and support farming."

But he confessed that there were problems of living on the edge of a massive mining zone, "There is a lot of dust and many traffic jams. No outsider can come here. It must have been a problem for you as well to get here. It is very difficult to go to Sanvordem. The whole road gets blocked. We want mining as well as our health."

In a tiny state like Goa, the debate over mining violations is not abstraction. It has come literally to the doorstep of the people who live in the mining belt - and it has divided them. From those who say it is destroying Goa's habitat to those who say it is bringing in new opportunities.

Whether you view Goa's mining belt from the ground or from the air - it is easy to see how the debate can shift from legal versus illegal mining to whether to mine at all in a state like Goa.  

Ramesh Gauns, a high school teacher turned activist of the Bicholem district outlines, "The problem is that these mines are entirely ruining the topography, not only the topography, the entire environment."

This is nowhere more apparent than in Bicholem, a town located in the shadow of a massive Sesa Goa mine along a mountain ridge.

He angrily claims, "The ministry of Environment and Forest sitting in Delhi, how can they decide the fate of my village, my town, sitting in Delhi, not coming down to my town to look at what's happening at the grassroots level."

He then takes us to nearby villages along the length of the mine to point out its impact.

In the village of Mulgaon, there are crimson patches in the village marsh, which he alleges, "This silt is from a mine which collapsed last month (August) on the 16th and that why the entire rejection got into the lake and the fields. Now the entire paddy cultivation is abandoned and gone under the silt."

Near the village of Assnora, we get an on-ground lesson on the flaws in environmental clearances.   

The mine is legal, but that's the reasons why activists are angry because without any technical knowledge, just by looking at the mine, there are at least 3 apparent violations that are visible. Number one that the slopes should have been reforested but that's not happened, only a little bit on the top there. Secondly they're saying that the phases of the mine has collapsed, which again constitutes a violation because that's a risk. And third and most obvious, is that the mine is right next to the Assnora river.

But when we enter the village of Sirigao, where mining by Dempos and Chowgules, has drained the water supply, we are confronted by opposing voices.

One of the local truck owners insisted, "Mining is good. It must continue. I own a tipper truck and feed myself."

This is the new reality of Goa's mining hinterland - and the source of its greatest divide. Trucks crammed into every available corner - the result of mining companies outsourcing transport to the locals.

There are 15,000 trucks on the roads of the state, many more on the way.

It reached a stage where the Superintendent of Traffic wrote a letter to the Chief of Police in April this year saying that the number of trucks driving through the mining zone should be reduced by 50%.

But the trucks have created prosperity overnight and local support, an argument as compelling as the Rs. 1000 crores in royalty, Goa earned last year through mining.  

Laxman Gaokar, a native of Sirigao and a truck owner said, "The mining companies give us a lot of benefits. There is a school for the children, school bus, water in the tap and a doctor who comes twice a week for checkups."

These men are willing to overlook the damage the mines have done.

Laxman feels, "Everything gets spoilt wherever there is mining. Look at Mapusa. There is no water there either. We get tap water and have two tanks from which PWD supplies water to us. The company pays for everything."

In the same village, we witness an extraordinary sight. A crimson maidan - an abandoned mine reservoir which has become a cricket pitch.

On the edge of the field, we meet a village resident, who says the truck drivers are short sighted.

A government employee Dilip Gaokar is angry, "We want out village. We have to save it. What livelihood does it provide? People are exposed to dust and fall sick. The companies divide the village and create fights."

Another resident Dinanath Gaokar agrees, "They have used British policy, divide and rule. and that is strictly followed by each and every company."

Those divisions came to the surface at the public hearing of the Justice Shah Commission -set up by the Centre to investigate illegal mining, when pro mining voices, mostly the truck associations, sparred with those who oppose mining.

But the commission has done its own ground work, surveying Goa's 90 operating mines using 8 teams - for encroachments, for clearances, for illegal exports and ownership.

The specific findings will take time but top sources in the Shah Commission used strong language to describe their preliminary take of mining illegalities in Goa.

Sources in the Shah Commission told NDTV that:

'Everything is wrong at all stages'

'There are many illegalities'

'The enforcement (of the law) is wrong'

'The state government is making excuses'

Elections in Goa are due early next year and if these wordings find their way into a final Shah report, the Congress and its beleaguered Chief Minister will have run out of excuses.

On being asked uncomfortable questions regarding the rampant illegalities, from people mining under raising contractors, to over production, to little checks on the ground, Chief Minister and Minister of Mines Digambar Kamat literally had one line answers for each.

On raising contractors:

"Their internal understanding with them probably. They have not put them on record with us."

On over- production of mines:


"We have now asked them to give details of the returns."

On zero checks on the ground:

"There are various agencies involved, only not the directorate of Mines."

On the involvement of politicians:

"I personally don't think there is anything in this"

On his future:

"God will decide."

Given the current political climate, an adverse report is bound to have serious political repercussions, for the Chief Minister and also for Goa's mining industry. But given the deep links that have emerged from Goa's political class and the mining sector, it is unclear whether the removal of one individual will radically alter the dynamics that have brought it to this crisis. Some would say elections are round the corner but others would say that is unlikely to bring any change at all.

(With inputs from Niha Masih)

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