Tuesday, June 28,
Delay is issuing of export permits is forcing Iron ore exporters in Karnataka to seek Supreme Court’s intervention. Exporters will file summons in early July to force the state government to uphold its lifting of an export ban.
The ban on exports of iron ore from Karnataka has been intact since July last year in order to check illegal mining in the state.
But the Supreme Court lifted the ban on 5 April, asking the government to allow exports from 20 April. The state government has so far not issued any transport permits
State government officials said iron ore exports are unlikely to be allowed unless the Central Empowered Committee (CEC), appointed by the Supreme Court, completes its report on illegal mining, which was the major reason for the ban.
Near about 15 million tonnes of iron ore is found lying idle in stockyards and mines of the exporters and the ongoing monsoon rains raise the risk of erosion.
India is the world’s third largest exporter of iron ore with approximately 100 million tonnes of overseas sales landing in China. India has been losing its export market to other smaller countries like Russia, Peru, Iran, Indonesia, while Australia and Brazil have strengthened their position.
So, any additional delay in shipments from India is expected to worsen the current tight supply situation, and it may further put pressure global iron ore prices.
Leave a Reply