Call For Removal Of Export Duty On Iron Ore Pellets From India.

It is reported that with mineral-rich states mounting pressure on the government to restrict export of iron ore and incentivize value addition, the mines ministry has written to the finance ministry seeking abolition of the 15% export duty on iron ore pellets.

According to the mines ministry, increasing the value addition of fines into pellets needs to be strongly incentivized. It further added that export duty wasn’t enough to promote value addition besides eroding the market of Indian pellets overseas.

The ministry said the country was currently producing 215 million tonne of iron ore, much in excess of the annual domestic requirement which is currently pegged at 88 million tonne. Of the total production, generation of iron ore fines stood at 126 million tonne of which only 40% find their way to the blast furnaces of the local steel producers and the remaining fines are exported by the miners.

Source : steelguru.com