Wednesday, April 20,
Displeased with a steep hike in duty on iron ore exports, Mines Ministry today described the move as ill-advised stating India ships only ‘fines’ which cannot be entirely used by domestic industry for want of technology.*
“If there are no domestic takers and exports are discouraged, what will happen?” said Mines Secretary S Vijay Kumar.
India, which produces 218 million tonnes of iron ore, exports half of the quantity – most of which is in the form of fines. The fines contain less of iron and only the big ones have the required technology to make use of the same.
The government had hiked export duty from five to 20 per cent on fines and from 15 to 20 per cent on ‘lumps’ in February. The move did not go well with the Mines Ministry as also the iron ore miners even as the steel industry welcomed it.
With requirements for fines not exceeding 30 million tonnes annually, the country is left with a big surplus.
“India uses fines for steel making only in the integrated steel plants, where there is sintering capacity,” Kumar said. Besides, country’s capacity for pelletisation, where fines are made fit for use in steel-making, will have to increase.
“Our pelletisation capacity is low. The only other way out is to create sinter capacity in the steel plants and use fines preferably sourced through long-term arrangements.
Source: The Economic Times
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