This small state is among India’s leading producer of metallic minerals, with 4% of the country's iron ore reserves and 8% manganese reserves.

The history of mining in the state is intrinsically related with its colonial legacy. The Portuguese awarded mining leases in perpetuity to some Goans – mainly small businesspeople. Mining in Goa is still largely in private hands. Based on agreements signed with the Indian government, mining concessions granted by the Portuguese were extended after Goa's integration with India in 1961. In 1986, concessions were converted into leases. However, many miners currently operate without lease deeds being signed, with little government control over mine owners.

Approx. 8% of the state's total area is being mined -- the highest proportion of any state in the country.

Iron ore, the principal mineral, takes up 56% of area under mining.

Almost 266,000 sq m of government land is under illegal encroachment by mining companies (Economic Survey 2005-06).

Most mines operate in the state below the groundwater level. On average, about 10 m3 of water is pumped out to extract every tonne of iron ore extracted. The once-blue waters of the Goan rivers are today blood red due to the silt from the mines.

The state faces a river pollution crisis, with the Selaulim and Bicholim rivers choked with silt, while Zuari and Mandovi are contaminated with arsenic (levels as high as 50 microgram/ gram). About 90% of Goa’s iron and ferromanganese transported through these two rivers to the Marmagao harbour.

Sensitive zones, where mining is slowly making inroads include Mollem National Park, the Bhagwan Mahaveer wildlife sanctuary, protected areas in Bondla, Neturlim and Cotigao wildlife sanctuaries.

Only 9.5% of the broken land has been reclaimed because mining companies have little interest in making the extra investment to restore the land. There are some exceptions. Sesa Goa, for example, has reclaimed over 200 ha of exhausted iron ore mines in Sanquelim