Mines Minister Dinsha Patel said on Wednesday, July 31, 2013, that they are looking forward for deduction in iron ore export tax. Indian government had raised export duties to 30% from 20% by the end of 2011, in order to fulfill the domestic needs for the material. High taxation and iron ore mining ban in Karnataka and Goa has restricted exports of the material to a large extent.
“Ministry of Mines has always opposed the ban on the export of iron ore. Our Ministry had earlier requested to reduce the export duty on fines. My Ministry will again request Ministry of Finance to reduce export duty on fines,” Mines Minister Dinsha Patel said.
The ministry will also put a petition to the railways to decrease freight charges for transportation of iron ore fines which are meant for export.
Export tax was around 5% in 2009 which has now hiked up precipitously to a rate of 30% which resulted to a gigantic plunge in export of the material. India was the third largest exporter of iron ore in the world and is slowly heading towards becoming a net importer of the material. Exports in FY 13 were recorded at around 18 MnT which were around 100 MnT earlier.
Pellet manufacturers are advised to manufacture pellets from iron fines which could be exported. Moreover, steel makers should build up such technologies which could use iron fines to make steel instead of the low grade iron ore which they use at present for steel manufacturing.