Essar seeks govt nod for iron ore export

Essar seeks govt nod for iron ore export

New Delhi: Ruias-led Essar Steel has sought government approval for exporting iron ore produced as waste in the process to make steel and said it would earn up to $35 million if such shipments were allowed.

“Essar Steel ...has requested for export of iron and fines having an FE content of more than 64% which are produced during the production process," a commerce ministry official told PTI.

The company makes steel through direct reduced iron or hot briquetted iron route which produces about 2.5 lakh tonnes of “broken pellet chips and fines" having FE content of more than 66%, Essar Steel has submitted to the ministry.

“...they cannot be used in the manufacturing process. They cannot be used by domestic users also," the steel maker, he said, has added.

“The total quantity of such waste/by-product would be approximately 2.5 lakh tonnes and has an FE content of more than 66%."

“Since Rule 18 3 (a) of the SEZ Rules stipulates that export of high grade iron ore, i.e. 64% FE and above, except iron ore of Goa origin and Redi Origin would be subject to approval of the Board, they have sought permission of Board of Approval (BoA) for export of above mentioned byproduct /waste," he said.

Essar Steel’s request has been placed for consideration of BoA, he added.

India exports a major portion of iron ore fines it produces annually. Last fiscal, the country exported about 106 million tonnes of fines, a chunk of which was shipped to China, which has the facilities to produce steel from the raw material.

“They have also submitted that the estimated foreign exchange earnings from the export of such waste/byproduct would be approximately $30-35 Million, he added.