Iran’s Ministry of Industries and Mines has enforced 10% export duty on Iron ore, which has come into effect from the current Iranian calendar year.
Iran is now the 4th largest Iron ore exporter to China, i.e. after Australia, Brazil and South Africa. It exported around 20.7 MnT of Iron ore to China in the first 11 months of its last calender year (21 Mar, 2013 – 20 Feb, 2014), which shows an improvement of 34% as compared to the similar time period in preceding year, as media report states.
Iran Iron Ore Export may come Down in this Calendar Year
Export of Iron ore from Iran may come down in this calendar year as duty on export was ‘zero’ last year. Also, Iranian Iron ore exported to China is of low grade and contains 54-58% total Fe along with high Sulphur and Phosphorus. Following China Government’s strict pollution norms over environment protection, Chinese importers may prefer more of high quality Iron ore.
Private mine owners are the primary exporter. About 90% of Iran’s total Iron ore export is to China.
Top 4 Iranian state controlled Iron ore mines account for about 75% of the country’s Iron ore production. They are:
- Chadormalu in Yazd
- Gol-e-Gohar Iron ore in Sirjan
- Sang Ahan Merkezi (Central Iron ore mines) in Bafgh
- Sang Ahan (Iron Ore mines ) in Sanghan
According to media reports, during 21 Mar 2013 – 20 Dec 2014, Iran’s Iron ore production was increased by 7% Y-o-Y to 26.06 MnT only by the contribution of 9 major Iron ore miners.
Iran took over India’s 4th position from the list of largest Iron ore exporters to China. In the last 4 years, export from India dropped drastically by 84.5% to 14.4 MnT in FY14, after imposition of 30% export duty.
In addition, Supreme Court ban on mining & export operations in Karnataka and Goa because of illegalities and environmental norms. Lastly, high railway freight charges, as well as allowing only 50% sale to outside states by Odisha government have hit exports.
Indian Iron Ore Exports to gain in FY15
On resumption of Iron ore export from Goa, which may contribute to about 6-7 MnT in FY15, Indian Iron ore export may rise to about 19-20 MnT in FY15.
Maintaining the ban on Goan Iron ore mining, Supreme Court in Nov, 2013 finally allowed sales of already extracted 15 MnT Iron ore, lying at various sites in the state.
Out of 15 MnT Iron ore, about 6-7 MnT is expected to sell in overseas market. Goa was the largest Iron ore exporting state of India, before the ban imposed.
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