State Industries Secretary of Goa, T M Balakrishnan has written a letter to his counterpart in Karnataka urging him to lift the ban in force from June 15 this year.
Six industrial units, dealing in sponge iron and pig iron, may face closure as they have run out of the high-grade ore that used to be supplied from Bellary, Chitradurga, Sandur and Hospet regions of Karnataka.
"If the ban continues beyond next week, it will lead to closure of these units on account of halt in supply of raw materials, which may further lead to the loss of employment for a number of people," Balakrishnan said in the letter.
Goa Chamber of Commerce and Industry (GCCI) has also been constantly lobbying on behalf of these units to get the ban lifted.
High grade ore is an essential raw material for these industrial units, which could not source it from Goa mines as the local ore has low Fe content.
GCCI Chairman Manguirish Pai Raiker stated that the Goa government is in the process of sorting out the issue, as it will affect the industries within the state.
All the six units, which produce sponge and pig iron, transport it to Karnataka's steel industries, which is a raw material in steel manufacturing.
Raiker said that Karnataka's ban will hit back on them, as their own steel industries will face shortage of sponge and pig iron.