Curb Iron Ore Exports - Says Indian Parliament Panel.

A Parliamentary Panel has said that the Indian government should explore the possibility of curbing iron ore exports to ensure availability of the key steel making raw material, as domestic reserves may last only for 10 years more.

The panel said that "The committee are concerned to note that reserve of iron ore may last till 2021-22. With a view to conserving iron ore for long-term use of domestic steel industry and also to ensure its availability to them at an affordable price, the government must explore possibility of restricting the export of iron ore.”

The Panel, chaired by Mr Kalyan Banerjee said that it was given to understand that the production of iron ore was much more than the domestic consumption as a result of which more than half of the output was exported.

According to official estimates, India's iron ore output and exports were at 208 million tonne and 97.6 million tonne respectively in last fiscal. In 2009-10, India had exported 117.37 million tonnes of iron ore.

India mostly exports iron ore to China and accounts for 22% of the neighboring country's total imports.

In order to restrict iron ore exports from the country and encourage addition to the value of the raw material, the government has raised export duty on iron ore export to 20% from 15% for lumps and only 5% for fines earlier.

Industry body Federation of Indian Mineral Industries had vehemently opposed the proposal saying that this would lead to up to 35% decline in shipments and many job losses in the labour-intensive sector.

Source : steelguru.com