Iron Ore exports declining in India

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The Mine Ministry will seek for the reduction of duty on fines from its finance counterpart from current 30 percent, being concerned over the steep decline in iron ore exports after the Prime Minister spoke about increasing exports to tame the country’s current account deficit.

Mines Minister Dinesh Patel said that their Ministry has requested to reduce the export duty on fines and that the Ministry of Mines has always opposed the ban on the export of Iron Ore.

He said that he would also request the Railway Ministry to reduce the freight for transportation of fines for export, while addressing the general meeting of miners’ body Federation of Indian Mineral Industries.

The export duty was 5 percent in the year 2009 which now has hiked to 30 percent thereby discouraging exports.

The export of iron ore has reduced from 100 million tons to 18 million tons. However the Prime Minister had said earlier that the government is trying to remove constraints on the export of iron and other ores.

Karnataka and Goa are the key producing states but higher taxes and shipment bans in these areas has curbed India’s iron ore exports. Goa exports all of its Iron Ore to china.

Mining has been banned there since September last year. Mr. Patel said that they will take all possible measures to remove the Iron Ore Mining ban in Goa and Karnataka.

Mr. Patel, meanwhile, has asked the miners to manufacture pallets from fines for export so as to get the benefit of decreased export duty.