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FIMI demands abolition of export duty on iron ore

FIMI demands abolition of export duty on iron ore
PTI
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First Published: Tue, Feb 05 2008. 05 14 PM IST
Updated: Tue, Feb 05 2008. 05 14 PM IST
Bangalore: The Federation of Indian Mineral Industries (FIMI) on Tuesday reiterated its demand to the Centre for abolishing export duty on iron ore and iron ore fines.
The existing export duty of Rs300 per ton being levied on iron ore and Rs50 on iron ore fines should be abolished forthwith to enable the industry compete with Australia and Brazil, Basant Poddar, FIMI representative, urged at a press conference here.
Currently India exports about 90 million tonnes of iron ore to China and the ruling spot price is about $90 per ton. Spot prices are so volatile in China that it can easily correct downwards.
“We feel spot prices will vanish in the next one year and it will be long term prices, which would be in the range of about $70 per tonne”, Poddar said.
He said while Australia and Brazil were spending billions of dollars in exploration activities, which included fast track reconnaissance permit, exploration licenses, availability of sophisticated aerial survey and others, the Indian industry was facing several problems including on the infrastructure front.
In Karnataka mine owners faced problems from officials who refuse to issue permits to transport iron ore even to legal license holders, he charged.
Poddar also said that FIMI and the Karnataka Government had decided to develop Tadri port in Uttara Kannada district under a public-private partnership with Rs 1,000 crore investment.
The state government was expected to clear the project in about two months, he said.
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First Published: Tue, Feb 05 2008. 05 14 PM IST
More Topics: Fimi | Iron ore | Export duty | Australia | China |