Steel bodies want cap on ore exports

Concerned over the limited availability of iron ore, steel industry representatives will press for a cap on iron ore exports at 90 million tonne a year.

Ahead of the Group of Ministers' meeting in Delhi on May 28, the steel industry would also suggests gradual reduction in iron ore exports to conserve the mineral for domestic steel industry whose production is increasing.

"There will be no impact on the employment and current investments (if these steps are taken). It will also help in achieving equilibrium between production and domestic consumption," the steel representatives, who would make a detailed presentation to the Home Minister Shivraj Patil-headed GoM, which would be reviewing the National Mineral Policy, 2007.

Opposed to the Anwarul Hoda Committee recommendation of unrestricted "unwarranted" export of iron ore, the industry, citing an Indian Bureau of Mines (IBM) report, said that India has only 15.5 billion tonnes of iron ore resources, which would entirely be consumed by 2034-35.

It also quoted a report prepared by National Council of Applied Economic Research, which also calculated that resources of high and medium grade of iron ore might not last more than 19 years.

India has been exporting 100 million tonnes of iron ore each year to China and Japan.