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Wednesday, January 4, 2012

Indian iron ore export tax hike reactions from miners

Wednesday, 04 Jan 2012

It is reported that the country miners have said the upward revision in iron ore export duty to 30% will make India produce uncompetitive in the global market and total shipments are unlikely to exceed 50 million tonnes in the current fiscal.

Mr RK Sharma Federation of Indian Mineral Industries' Secretary General said "The government has further hiked export duty on iron ore to 30 per cent on December 30. This will make Indian iron ore totally uncompetitive in the world market."

He said that "Iron ore exports are already down by around 30 per cent during the April-November period of the current fiscal over the same period last fiscal. It will be far more challenging next year."

Mr Sharma said in the remaining period of the current fiscal, only some quantity of exports would be feasible from Goa, besides stocks lying at other ports. He said that "However taking all, it is not going to be 45 million tonnes to 50 million tonnes in the current fiscal."

Mr Glen Kalavampara secretary of the Goa Mineral Ore Exporters' Association said "We are shocked at the decision to hike export tax on iron ore as such volatility in policy does not promote India's image as a reliable supplier."

He said that "Absence of supplies from India will help Australian and Brazilian suppliers to consolidate their domination of the global market."

India, the world third largest iron ore exporter, had shipped 117.3 million tonnes of iron ore in 2009-10 and 70% to 80% of this was in the form of fines which do not have many takers among domestic steel makers. In 2010-11, iron ore exports from the country came down to 97.64 million tonnes and in the first eight months of the current fiscal, exports dipped by a little over 28% to 40 million tonnes vis-a-vis the corresponding period last fiscal.

(sourced Reuters & ET)

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