Govt says 'no' to ban on iron ore export

The government has informed the Lok Sabha that it has no plans to bring about a policy to ban export of iron ore.

"No," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to a query whether the government proposes to bring about a comprehensive policy on banning export of iron ore.

He said that India has one of the largest reserves of iron ore in the world, and mining is only expected to increase due to advanced exploration techniques.

"...It is unlikely that reserves will be depleted with exports," he said.

On April 1, 2005, the resource position of iron ore was estimated at 25.249 billion tonnes. Iron ore exports stood at 105.87 million tonnes in 2008-09.

Scindia said that iron ore 'fines' constituted about 87 per cent of the exports. Stating that there was limited demand for 'fines' in the country, he said that it was exported to prevent stockpiling and environmental hazards at mining areas.

Scindia also said that the Karnataka government, while referring to exploitation of mines and illegal mining, favoured setting up industries locally to produce value-added products by utilising iron ore and discouraging exports.