FIMI continues to seek ban on iron ore pellet exports from India

Thursday, 03 September 2020 14:55:00 (GMT+3)   |   Kolkata
       

The Federation of Indian Mineral Industries (FIMI) has sought an immediate ban on exports of iron ore pellets from India, claiming them to be “illegal” on the basis of the previous government directive, the federation said in a communication to the Indian prime minister on Thursday, September 3.

The apex body of the Indian mining industry cited a policy directive issued by the Directorate General of Foreign Trade (DGFT) - ITC (HS) 2018 Export Policy - which specifically mentions under “policy condition” that only state-run KIOCL Limited  “or any other entity authorized by it” could export iron ore pellets from the country.

“We submit that as per the DGFT policy directive, only the iron ore pellets manufactured by KIOCL are allowed to be exported. All other pellet producers are therefore exporting pellets in total violation of the government’s policy,” FIMI said in its communication to the prime minister.

“We understand that a few integrated steel producers are advocating for restrictions on iron ore exports from the country on the plea that the domestic steel industry is not able to meet its full requirement from domestic sources. While the domestic steel industry is using only high grade iron ore of Fe content 62% +, these integrated steel producers want all iron ore and raw materials in the country to be blocked for their use,” FIMI said. “On the contrary, the same steel players have been exporting pellets…,” FIMI added.

Backing its demand for a ban on “illegal” pellet exports, the miners’ body said that despite impact of Coivd-19 during the first two months of fiscal year 2020-21, 4.01 million mt of pellets were shipped out of the country and this in a full year would translate to total exports of 24 million mt, almost a 100 percent increase over the previous fiscal year and this would severely hinder the growth prospects of the domestic sponge iron industry.


Most Recent Related Articles

India’s KIOCL plans downstream projects for new iron ore mine

Indian iron ore exports rise to 4 million mt in Sept, shortage in domestic market forecast

India’s coking coal imports improve in Sept, iron ore exports keep rising

Former iron ore miners in Odisha now have until Oct 30 to liquidate past stocks

Indian steel ministry proposes iron ore royalty cut to boost value addition