Indian iron ore mining mess - Exports from Chennai Port hit.

BL reported that the ban on iron ore exports by the Karnataka Government is affecting the Chennai port.

As per report, there has been no inflow of iron ore from that state in the last few days and the storage yard that usually has huge mounds of iron ore is half empty.

According to a personnel working in the terminal, the port is handling only the backlogs.

The report cited Captain Subhash Kumar chairman of Chennai Port Trust as saying that “We are worried about the empty plots.”

He told Business Line “The Chennai port annually exports nearly 10 million tonnes of iron ore mostly to China. The stock yard at BD2 berth has a capacity to store nearly 600,000 tonnes. The port will lose a good chunk of iron ore throughput during the year if the ban continues for a long time, but there will not be any revenue loss for the Chennai Port Trust. Exporters have taken plots on lease and they need to pay for the Minimum Guaranteed Throughput.”

The ban in Karnataka will impact export of iron ore from the southern ports of Chennai, Ennore, Krishnapatnam and New Mangalore. Predominantly, the iron ore handled in these ports originate from Bellary Hospet sector and, hence, any ban on movement of iron ore from the sector for exports will translate into a total shutdown of iron ore handling in these ports till the order is revoked.

Source : thehindubusinessline.com