PMO to resolve differences over Indian iron ore exports.

The prime minister's office is reportedly preparing to step in to resolve inter ministerial differences over iron ore exports. The PMO will hold a meeting on the matter next Tuesday with the ministries of mines and steel, which hold divergent views on the matter.

The trigger for the meeting is apparently a letter from Karnataka chief minister Mr BS Yeddyurappa to Prime Minister Dr Manmohan Singh seeking a ban on iron ore exports.

Steel minister Mr Virbhadra Singh, who has been pitching for a steep hike in export duty to 20% on iron ore, went further and demanded a ban on exports in the wake of soaring domestic price of the mineral, which India is increasingly important to meet domestic growth targets.

He said that "The steel ministry's considered view is a ban on iron ore exports, we should conserve the precious minerals and export value-added products."

At present, the export duty on iron ore fines is 5%, while it is 15% on lumps. Last month, the ministry had written to the finance ministry seeking a duty hike.

The issue of higher input costs faced by steel makers was brought up before the prime minister.

Source : Steel Guru