Setback for Odisha based Sponge iron units as government holds export of Iron ore fines generated during processing of 0-10 mm Ore.
Bhubaneswar: A major set back for Sponge iron manufacturers in Odisha is that the government has taken a decision to restrict export of Iron ore fines.
An order issued by the DDM (Deputy Director of Mines) on 24 Feb, 2014, Talcher circle stated that export of fines will not be allowed till further orders from the government. It asked all the Iron ore based industries /crusher units to keep a separate record of all those fines in addition to the form E & F.
According to sources, the government has taken the step after it found that some companies had been alleged of exporting fines by paying domestic railway freight. (Indian railways charge, higher freight for Iron ore exports and Pellets).
Odisha based DRI units (Sponge iron) generally use 0-10 mm size Iron ore. This kind of ore generates low grade fines, since these fines are almost unusable for them, which they prefer to export. But, with the new government order, the units have to store these materials while maintaining a separate account.
Letter Attached
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