India’s mines ministry wrote to the finance ministry on 19 Feb’16 proposing cutting the export duty on high-grade iron ore to 10% from 30%, Mines Secretary Mr. Balvinder Kumar , as shipments tank amid a crash in prices.
He further added that iron ore export has fallen drastically and there are stocks of 126 MnT in three states. Prices are so low now that exports are not viable.
It is to be noted that on low grade iron ore fines (less than Fe 58%) export duty is currently at 10% and those for fines (58% and above) it is 30%. Export duty on lump is 30% irrespective of grades.
Prior to this as a measure to boost sales amid a sharp plunge in global iron ore prices, Mines ministry has urged for scrapping of export duty on low grade iron ore extracted from Goa. Iron ore obtained from Goa is mostly of low-grade ore which is mostly exported to China.
By far Goa govt. has manged to sell merely 8.23 MnT iron ore in the 14 e-auctions conducted since Feb’14 out of the huge stockpile lying prior to the imposition of mining ban. And DMG is likely to conduct 15th e-auction in which it has put entire balance quantity of 7.76 MnT iron ore under hammer.
As per sources, reducing export duty on all grades of iron ore to 10% will aid in clearing the considerable stockpile lying in three major iron ore producing states namely Odisha, Karnataka and Jharkhand.
-Sourced
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