Odisha government has approached the mines ministry for removal of export duty on high grade iron ore which is presently at 30%.
With a view that removal of high-grade iron ore export duty will help to clear stock-piles of high-grade iron ore in states of Odisha and Jharkhand, Odisha government has recommended the mines ministry to abolish the iron ore export duty on high-grade iron ore which is currently at 30%.
In conversation with SteelMint, Mr. Deepak Mohanty (Director of Mines, Odisha) shared “We had approached the mines ministry to remove 30% export duty on export of high grade ore from state so as to boost exports. However we are yet to receive any further update on the same from the ministry.”
Post removal of low-grade iron ore export duty and sharp increase in global prices, low grade iron ore exports from Odisha have picked up. Better realizations in export is attracting attention of Odisha’s major merchant iron ore miners. In FY17 (till Jul’16) 0.78 MnT iron ore has been exported from Paradip and Dhamra ports.
However high-grade iron ore export from Odisha is still not seen taking place owing to lesser viability over 30% export duty.
Odisha government is anticipating state’s iron ore production to increase and touch 100 MnT in FY17, following this iron ore stock-piles at mines head is likely to increase further.
As per reports, Ministry of Mines is awaiting Steel Ministry’s response on the proposal to remove 30% export duty as some primary steel producers are of the view that domestic iron ore should be utilized within the country and should not be exported.
Leave a Reply