Miners urge govt to not impose export obligation on low grade iron ore

NEW DELHI: Miners’ physique FIMI has urged the federal government to not impose any export obligation on low-grade iron ore, stating that any such transfer would trigger a major lack of state revenues and employment and likewise have an effect on international trade earnings. In a illustration to the federal government, the Federation of Indian Mineral Industries (FIMI) mentioned the mining sector was adversely impacted when in Could 2022 the export obligation was imposed on low-grade iron ore fines and pellets. The federal government, nonetheless, withdrew the tax in November identical yr. A serious share of the mining sector’s contribution to the nation’s GDP is accounted for by iron ore among the many non-coal minerals. Iron ore mining additionally considerably contributes in the direction of creating jobs with employment of about 5 lakh individuals –45,000 direct and 4,50,000 oblique, it mentioned. Greater than 90 per cent of the nation’s total iron ore shipments go to China. “We request that any proposal for banning, restricting exports of iron ore and pellets may kindly not be considered and the status quo of nil export duty on these products be maintained,” the miners’ physique mentioned. With the opening of latest mines and growth of current mines the iron ore manufacturing capability is more likely to rise to 330 million tonnes in FY’25. But when there’s a ban on exports of iron ore or an obligation is imposed on its exports, in such a situation the manufacturing will drop to 225 million tonnes, it mentioned. Within the mining of iron ore, lumps are generated to the tune of solely 25-30 per cent and the stability of iron ore is within the type of fines. “The fines below 58 per cent Fe are required to be kept in the mining lease area only as these cannot be utilised by the steel industry specially secondary steel sector,” it mentioned. The non-removal of low grade iron ore from the mines prohibit the manufacturing of lumps additionally and turns into an environmental hazard moreover limiting scientific mining. Thus accumulation of iron ore fines within the mines additionally results in the restricted availability of lumps out there which in flip adversely impacts the metal business, it mentioned.

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