India’s Ministry of Mines has constituted a committee to review the export duty on iron ore fines, and reconcile conflicting demands of various steel and mines industry segments ahead of Union Budget 2018-19, a senior government official said on Tuesday, November 7.
The official said that several industry segments like iron ore miners, pellet manufacturers and steel mills have submitted conflicting demands on iron ore export duties and the committee has been mandated to review each demand and make recommendations which could be put forth during the Union Budget making process to incorporate any changes found necessary.
The Federation of Indian Mineral Industries (FIMI), the representative body of miners, in its representation has sought the scrapping of 30 percent export duty on high grade iron ore fines with Fe content of 63.5 percent and higher.
Similarly, iron ore miners in the western Indian state of Goa have sought the scrapping or reduction of the 30 percent export tax on medium grade, 45-58 percent Fe content, in line with the nil rate applicable to lower grade iron ore fines with Fe content less than 45 percent.
On the contrary, the Pellet Manufacturers’ Association of India (PMAI), has sought a further tightening of iron ore exports from the country and has in fact sought a complete ban on exports, claiming that overseas shipment of the raw material has been rising despite the export tax.
The PMAI has argued that, with the Ministry of Steel advocating higher usage of pellets by steel mills, there is an urgent need to prevent exports of iron ore from the country and thereby promote greater value addition within the country.