A committee appointed by India’s Supreme Court has recommended that iron ore exports from the southern Indian state of Karnataka be permitted to the extent of iron ore volumes entering the state, government officials said on Thursday, May 9.
The committee recommended that iron ore mines located in Karnataka should be permitted to export iron ore volumes equivalent to iron ore imports as well as iron ore shipped into the state from other parts of the country, irrespective of the grades of iron ore that are brought into the state through imports or from mines across the country, the officials said.
The committee, however, has laid down some conditions, including the condition that iron ore miners in Karnataka could sell volumes to commercial traders for onward export. Miners could also offer volumes for sales directly or through traders that had been left unsold during four consecutive domestic e-auction sales conducted by the local government, the officials added.
Citing examples, the officials said that there were total unsold iron ore stocks of 6.5 million mt from auctions conducted during the 2018-19 year and that these would be eligible to be put up for exports.
The committee’s recommendations come in wake of miners in Karnataka applying to the Supreme Court last month seeking permission to export iron ore in view of mounting unsold stocks piling up in the state.
As per a Supreme Court order of April 13, 2013, exports of iron ore from mines located in Karnataka were prohibited.