Steel Min to meet PM, FM on restricting iron ore exports

To discourage exports of iron ore, Steel Minister Virbhadra Singh will soon talk to Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee for restricting shipments of the mineral.

"I am taking up the matter (exports of iron ore) with the Prime Minister and Finance Minister," Singh said on the sidelines of a function organised by Steel Authority of India Ltd (SAIL) last night.

Iron ore is the key raw material used in steel-making and the steel industry has been demanding an increase in export duty on it to 15 per cent on the ad valorem basis. At present, there is five per cent export duty on iron ore lumps, while the duty on iron ore fines is zero.

On fluctuating steel prices, he said, "I don't think there is any rationale for increase in steel prices because the prices of inputs have already gone down."

SAIL will continue with the with-drawl of the Rs 500-750 a tonne rebate on some steel products, while slashing prices on certain items by up to Rs 2,000. Tata Steel has hiked prices by Rs 500-750 a tonne on some of its products.

The minister also said the issue over leases of Chiria mines would be resolved soon.

Of the 10 mining leases, SAIL had in Chiria and Gua regions, renewal of four is facing dispute while four others have got extension.

Besides, SAIL has full-time lease of the remaining two mines.