The new mining policy is expected to ease the regulations regarding the operation and development of iron ore mines. Despite the demand from the country's steelmakers to limit iron ore exports to ensure domestic deliveries, exports will be freely allowed.
Although steelmakers argue that the export duty on iron ore, which was imposed on all ore in February but then partially rolled back, failed to restrict exports, the local iron ore miners have a different opinion. Mr. R K Sharma, secretary general of the Federation of the Indian Mineral Industries (FIMI), stated, "Despite strong demand from China, the appreciation in the value of the rupee and the export duty has not allowed us to take full advantage".
The new mining policy is still to be approved by the cabinet.