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

Miners’ physique FIMI has urged the federal government to not impose any export responsibility 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 overseas alternate 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 responsibility was imposed on low-grade iron ore fines and pellets. The federal government, nonetheless, withdrew the tax in November identical 12 months.

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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 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, limiting exports of iron ore and pellets might kindly not be thought of and the established order of nil export responsibility on these merchandise be maintained,” the miners’ physique mentioned.

With the opening of latest mines and enlargement of current mines the iron ore manufacturing capability is prone 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 state of affairs 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 beneath 58 per cent Fe are required to be stored within the mining lease space solely as these can’t be utilised by the metal business specifically secondary metal sector,” it mentioned.

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The non-removal of low grade iron ore from the mines limit the manufacturing of lumps additionally and turns into an environmental hazard apart from 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.