The long awaited supreme court decision on ban on iron ore mining in Karnataka has come today. Verdict has got cheer for steel makers based in the country. Along with this Supreme court also directed that “theiron ore which becomes available should be usedfor meeting the iron ore requirement of thesteel plants and associated industries locatedin Karnataka and also of those plants locatedin the adjoining states which have beenusing the iron ore from the mining leases locatedin these districts.
Exports, outside the country,should be permissible only in respect ofthe material which the steel plants and associatedindustries are not willing to purchaseon or above the average price realizedby the Monitoring Committee for the correspondinggrades of fines/lumps.
Market experts say that exports will not be viable as high grade will be always bought by steel manufacturers and left out quantity will low grade which will not have feasibility due to higher freight costs and high export duty.
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