Iron ore exporters need the entire withdrawal of the 50% export responsibility on low-grade iron ore or fines (lower than 58% Fe content material) imposed with impact from May 22, the Federation of Indian Mineral Industries (FIMI), the apex physique of the miners, stated.
In a letter written to Finance Minister Nirmala Sitharaman on Monday, FIMI stated following the imposition of the responsibility, exports of fines have nosedived 92% to simply 0.23 million tonne (MT) in June, the primary full because the responsibility was imposed from nil earlier, in contrast with 3.24 MT in the identical month final yr.
“After the imposition of export duty @50% on iron ore of -58% Fe, the exports have drastically declined to 0.23 million tonnes during June 2022 from a level of 3.24 MT during the same corresponding period of June 2021 which is a fall of 92%. The iron ore which has been effected during the month of June 2022 is the material which was already either in transit or at ports prior to imposition of export duty,” FIMI stated within the letter.
Urging the minister to utterly withdraw the impost, the affiliation stated the imposition of prohibitive responsibility was akin to digital banning of iron ore fines’ export at the same time as home steelmakers don’t purchase the fabric for need of needed know-how. If not exported, they are going to carry on piling on the mine heads and trigger environmental hazards.
“Currently the non-moving stock of more than 121 MT of mainly low-grade iron ore is lying at various mine-heads and in dumps in the country,” FIMI stated.
Indian miners export low-grade fines to China, however owing to subdued demand from China, the exports of those materials declined to 12.83 MT in FY22 from 34.26 MT a yr in the past.
The trade physique, nevertheless, silent on export responsibility additionally hiked for lump ores or these have greater than 58% iron content material to 50% from 30% earlier.
Source: www.financialexpress.com”