'Find way to add value before seeking ban on iron ore exports'

Amid a demand from steel industry to ban iron ore exports and reports that the law ministry is for conservation of the mineral, the mines ministry has said the industry should first develop the technology for value addition.

Mines Minister B K Handique said: “Before you (steel producers) say exports should be banned (and) raise (duty), you find a technology for it first. Then you talk about it.”

The steel industry has been demanding a ban on iron ore exports apprehending that rampant outbound shipment may deplete the estimated 25-billion-tonne reserves in about three decades.

The ministry officials dismissed reports that there were any differences with the law ministry on the issue and the opinion obtained from the latter related to only certain conservation aspects and did not relate to exports. Some reports interpreted the law ministry’s opinion as a suggestion for banning the exports of iron ore from the country.

In its opinion on draft Mines Bill sent to it by the mines ministry, the law ministry had stressed on the need for the conservation and judicious exploitation of natural resources while referring to the latest ruling by the Supreme Court that the Centre had sovereign authority over the natural resources.

The judgment was delivered in the dispute between Mukesh Ambani and his brother Anil, whose group firm wanted cheaper natural gas from Mukesh’s RIL. The mines ministry official elaborated that the suggestion about conservation was a general one and did not specifically relate to iron ore.