Iron Ore Exports

Industry body UCCIL has warned that an export duty on low-grade iron ore will lead to drop in production, domestic prices, long-term capacity losses and erosion of India's export competitiveness. The government is planning to impose a 30 per cent export duty on low-grade iron ore from October this year. The Utkal Chamber of Commerce & Industry Ltd (UCCIL) said in a statement, "The proposed export duty will also result in sectoral destabilisation: a likely decline in production, crashing domestic prices, erosion of India's export competitiveness, and long-term capacity losses. The effect will also be felt in employment, regional economies, and industrial output." It "urged the Government of Odisha to protect the state's iron ore mining industry given the recent discussions by the central government around the imposition of export duties on low-grade iron ore". Such a measure will inevitably destroy the sector, cause a collective loss of over Rs 16,200 crore to the exchequer of ...

The government has been considering raising the export duty to between 20 per cent and 30 per cent, from zero now

The Enforcement Directorate on Wednesday raided premises linked to Karnataka Congress MLA Satish Krishna Sail and some others as part of a money laundering investigation against the legislator in a case related to alleged illegal export of iron ore, official sources said. At least 15 premises in Karnataka, Goa and Mumbai are being searched under the Prevention of Money Laundering Act (PMLA), the sources said. Sail is a Congress MLA representing the Karwar assembly constituency in Uttara Kannada district. Sail, according to the sources, has been accused of exporting illegally mined iron ore which was seized by forest officials at Belekeri port in Karwar, Karnataka. This caused "loss" to government exchequer for an amount of about Rs 38 crore but the actual value of illegally exported ore is worth hundreds of crores of rupees, the sources said. The case originated from a 2010 probe by the Karnataka Lokayukta, which discovered about eight lakh tons of illegally transported iron ore f

India currently does not tax exports of low-grade iron ore, but levies a 30 per cent export duty on high-grade iron ore

"In October, exports were nearly zero, and it will be so while the duty remains," R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries (FIMI), told Reuters in an interview

India's imposition of higher export tax on iron ore and various intermediate products such as pellets will raise costs for steel mills, says Moody's

The increase in export taxes on iron ore, announced by the government over the weekend, will lead to large surpluses at home, and mainly hit producers of low grade ores that depend on overseas markets

Says people end up paying a huge premium and then the assets become unsustainable

Exports to China saw sustained double-digit growth for the fourth straight month in August, led by eightfold rise in iron and steel shipments

The domestic secondary steel industry contributes nearly 55 per cent to the total production of the alloy in the country

An unexpected surge in Chinese demand has sent global iron ore prices to a six-and-a-half-year high but export restrictions prevent Indian companies from taking advantage

Depending upon the Fe content, the iron ore can fetch a price of USD 40-45 a tonne to USD 62 a tonne, an expert said

Miners through Federation of Indian Mineral Industries (Fimi), have stressed on exemption of the steep export tax since there were hardly any takers for baser grade ore within the country

Iron ore supply growth woul be primarily driven by India, Brazil where major miner Vale is set to expand output with its new mine

NMDC to soon sign an MoU with Andhra govt for ore linkage; steel minister Pradhan hints at huge petroleum investments in state, say players want to park as much as Rs 2 trn in the east coast

After hitting a five-year high of $121 a tonne in July, spot iron ore prices tanked to $93

By failing to extend the zero export duty benefit on higher grade ore, Indian miners could not cash in on supply shocks and rising Chinese demand

Exports of iron ore pellets, too, declined 7 per cent in April-January period of last fiscal due to uncertainty in winter output cuts in China and weak inquiries from the non-Chinese markets

Global supply turmoil created by shutdown of a string of mines held by Brazil-based Vale, the world's largest iron ore miner

The reason: slackening exports of low grade ore, with demand from China down to a trickle