House panel mulls iron ore exports ban from India.

A parliamentary standing committee on coal and steel has recommended either a complete ban on iron ore exports or hiking the export duty high enough to minimize outflow of the precious raw material.

It expressed anguish more than one third (36.9%) of the total iron ore produced in the country was exported during 2011 to 2012. Despite the Planning Commission warning that the iron ore reserves in the country may not be sufficient to meet the domestic steel industry's demand beyond 25 years, an export of 486 million tonnes of the raw material worth INR 1.85 lakh crore during the 11th Plan is baffling.

The panel headed by Trinamool member of Parliament Kalyan Banerjee disapproved the iron ore export policy of the government and noted that even imposition of higher export duty was no solution for the long-term conservation of the ore required by steel industries in the country. It also disapproved the decision to reduce export duty on pallets to zero.

It said that imposition of higher export duty on iron ore fines and non-exemption of pellets from export duty will give an impetus to set up pelletisation plants in the country by stand-alone miners. Setting up of more pelletisation plants will also generate employment opportunities and will also generate more revenue in terms of value added products.

Source : steelguru.com