| Date: |
05-12-2015 |
| Subject: |
Goa miners for abolition of export duty on low-grade iron ore |
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NEW DELHI: Goa miners have asked the government to withdraw export duty on low grade iron ore stating it would help India to become competitive in the global market and earn foreign exchange from the commodity that has very little demand in the country.
"It is requested to withdraw the export duty on low-grade iron ore (both fine and lumps)," Goa Mineral Ore Exporters' Association said in a letter to the Commerce Ministry.
Explaining the rationale for such a demand, it said exports of low grade iron ores should be actively encouraged as there is a very little demand for it in India.
Goa mainly produces low grade iron ore with iron content between 55-58 per cent.
Such low grade iron ore is uneconomical to consume in the domestic steel industry, except in very small quantities due to unavailability of coking coal domestically besides other technical issues, it added.
"A reduction in export duty on the low grade iron ores can help valuable foreign exchange to the tune of USD 1.6-2 billion for the country whilst providing a boost to the local economies and employment by way of making export of such low grade possible instead of being wasted," the letter said.
"There are many companies in Australia and Brazil and South Africa who are trying to ramp up their production with an aim to reduce their free on board (FOB) cost... So even if India does not export, Chinese Steel Mills will be supplied with low cost ore from these countries," it said.
So it is important for India to become competitive in this global environment and earn foreign exchange from material that cannot be used in domestic market, the letter said.
Source : economictimes.indiatimes.com
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