Iran, 4th largest Iron ore exporter to China after Australia, Brazil & South Africa, has decided to postpone the enforcement of 10% export duty on Iron ore Lump & Fines.
Iranian Ministry of Mine, Trade & Industry was likely to impose export duty on Iron ore in the beginning of current fiscal (21 Mar, 2014-20 Mar, 2015). The decision was taken to save its resources for domestic steel mills.
The enforcement of duty has been deferred until March, 2015 as market is quite weak and the duty would act as an additional burden to Iron ore sales. Since Sep’12, Iran’s Iron ore exports have been reported to be lowest in June, 2014. Iron ore prices have declined sharply this year and Australia & Brazil have increased shipments to Iran. Thus, many private mines in Iran have closed down and stockpile at Iranian ports has elevated.
Private mine owners in Iran are the primary exporters with about 90% of Iran’s total export. The country has about 150 private mines that mine 11-12 MnT. Less than half of nearly 38 MnT total ore produced by almost 10 state-owned mines are exported.
Top 4 Iranian state-controlled Iron ore mines account for about 75% of the country’s Iron ore production.
- 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
In Iran, current export duty on FoB prices for Iron ore concentrates is 40% and for Pellets, it is 30%.
Source: SteelMint, Reuters
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