“Iron ore export duties may be pushed by 5-10%”- Steel Ministry

A further increase
in iron ore export duties of 5-10 per cent may be pushed for by the Steel
Ministry. Export duty of 20 per cent currently apples to both fines and
lumps.

In a reply to a Lok
Sabha question, Minister Beni Prasad Verma said duty could be
increased further. An official confirmed that while the Ministry was yet to
make a formal request to the Commerce Ministry, it was considering asking for
export duty to be raised to 25-30 per cent. 

Iron ore exporters believe the Government was taxing one industry, and one
mineral, too much. “Especially for Goa's low grade iron ore, most of which
is of 56-58 FE grade and has no domestic takers. Iron ore is exported only
after meeting domestic requirement,” said Mr Sridhar, Executive Director,
Goa Mineral Ore Exporter's Association. 

Mr Verma told Lok Sabha on Monday that conservation of iron ore resources of
the country and for domestic consumption should be achieved through fiscal
measures and not capping or banning exports. Estimated exports for 2010 -2011
accounted for nearly half of the country's production of 208.11 MT. 

The current ban on iron ore mining in the three districts of Karnataka is
likely to further reduce export volumes. Already, before the Supreme Court
suspended private mining, exports to China had fallen from 125 mt in 2009-10 to
95mt in 2010-11. the ban has also impacted steelmakers, though the court has
asked NMDC to provide a million tonnes per annum to affected steelmakers in
Karnataka.