Mines Ministry seeks 50% cut in export duty on iron ore fines
Ahead of the Budget, Mines Ministry has sought from the Finance Ministry reduction of export duty on low grade iron ore by 50 per cent to boost production to enhance export of the mineral.
"We have sought reduction in the duty on fines to 15 per cent from the Finance Ministry. Now they have to decide it. Presently there is a uniform duty of 30 per cent on both, iron ore lumps and fines," Mines Minister Dinsha Patel said here.
Shipment of Fines, having low iron content and constituting around 92 per cent of the total iron ore exports, were at 60 million tonnes (MT)in 2011-12, data compiled by
mining industry body, FIMI, showed. This is in contrast to about 120 MT exports achieved in 2009-10.
Between April-November, 2012, total iron ore exports were at 15 MT, down over 62 per cent compared to the same period of previous year, the FIMI data says.
According to the industrial production (IIP) data, mining sector has shown a negative growth of 2.6 per cent in the first nine months of the current fiscal and has widened from the previous year's level of (-)1.9 per cent.
In December, 2012 itself, mining sector had a negative growth of 3.3 per cent. Iron ore, a key raw material for steel production, is one of the major components in the mining index of IIP data.
When asked about the demand of domestic steel industry for a complete ban on iron ore exports, Patel said, "Whatever is domestic demand should be made available, there
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