Ore exports may dip 32%

Exports of iron ore from India, which has the world's fifth-largest reserves of the mineral, may tumble 32 per cent this month after the government imposed a tax on shipments, the Federation of Indian Mineral Industries said.

Indian miners have said the tax of Rs 300 ($7) a tonne will boost the sales for Australian producers. The government wants to curb exports to ensure there are sufficient supplies to meet the demand from steelmakers including Arcelor Mittal and Posco, which are planning to spend $21 billion on plants in India.