Home / Industry / Mining engineers body raises concern over 50% export duty on low-grade iron ore

NEW DELHI: The Goa chapter of Mining Engineers Association of India has urged the central government to withdraw the 50% export duty imposed on iron ore of low grade, with iron content below 58%. 

The association's said that the imposition of export duty will have far-reaching ramifications not only on the iron ore mining industry in Goa, but across the country.

The association said that the industry had already been hit hard by the four-year halt in mining operations Goa, and the levy of export duty will worsen the situation by forcing producers of of low-grade iron ore and pig iron to shut down operations.

It expressed concern over huge inventories of low-grade iron ore lying at various pit heads which have no takers in the domestic market, while the 50% duty makes exports unviable.

This has led to significant drop in iron ore prices across the country and has also reduced revenues accruing to state government in the form of auction premium, royalty, among others. A fall in such levies will impact state revenues and socio-economic development activities in the peripheral areas of mines.

“…We believe that imposition of export duty on Iron Ore especially low grade (below 58% Fe) will not lead to any steel price reduction in the country since low grade iron Ore is not feasible for utilisation in our country’s domestic steel operations unlike other steel-producing countries, which consumes low-grade iron ore below 58% Fe grade…There is no reason to restrict export of low-grade iron ore which can earn the massive foreign exchange and exchequer contribution for the country," said Joseph Coelho, Chairman- MEAI, Goa.

Currently, nearly 121 million tonne of low-grade iron ore is lying at mine-heads and in dumps across the country.

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