GMOEA admits to illegal exports from Goa

Tuesday, 22 Nov 2011

IANS reported that an association of leading mine owners in Goa Monday admitted to illegal mining and exports of iron ore in Goa, but expressed concern over a possible ban on shipments of the mineral sent abroad.

In a written statement here, members of the Goa Mineral Ore Exporters Association, which represents the bulk of the several thousand crore worth mining industry in Goa, has also said that the export boom to China had resulted in a spurt of illegal mining, thanks to traders and fly by night operators.

Mr PK Mukherjee MD of Sesa Goa Limited said “The association doesn't deny that there are certain illegalities in mining sector and in particular in the spectrum of exports in this state. However, a blanket ban on the industry can never be a solution since it will lead to a destabilization of Goa's economic apparatus as the mining industry in Goa contributed approximately 35% of the state's Gross Domestic Product.”

Mr Mukherjee called for a strict monitoring apparatus and systemic changes to ensure that those guilty of illegal mining be brought to book.

The central government appointed Justice M.B. Shah Commission is expected to submit its report on illegal mining in the state in December.

Goa exported 54 million tons of iron ore in the last fiscal from its nearly 100 operational open cast iron ore mines.

(Sourced from IANS)

FIMI urges not to impose blanket ban on iron ore export

Monday, 14 Nov 2011

The Federation of Indian Mineral Industries has urged the Indian government not to impose a blanket ban on the export of iron ore, as it would affect India's steel industry and result in the closure of captive mines.

Mr RK Bansal FIMI secretary in the letter written to Joint Plant Committee, Union Ministry of Steel, on November 4, has said that there should be no blanket ban or qualitative restriction on ore exports.

FIMI has argued that due to the discontinuation of mining, further exploration would also come to the halt and therefore no further addition to reserves and resources can happen.

Mr Bansal said that "A ban on export will mean that most of the non-captive mines will get closed with consequent adverse impacts on local economy, employment as well as state revenues.”

He said "With the discontinuance of non-captive production, the availability of lumps and high grade fines to the steel industry will get reduced, thus proving counter-productive to the interests of the steel industry.”

The federation has also demanded that export duty should not be imposed as exports provide cushion against fluctuation in demand and prices in the domestic market and vice versa.

It has said that there should be no captive mines allowed to any steel plant, since the domestic iron ore production is already surplus to the domestic demand and will continue to be so for next few years.

FIMI has urged the centre to develop iron ore mining as a standalone mining industry, separate from steel industry, so that, both could work at arm's length and benefit from each other's strength and innovations rather than take shelter behind the safety net available.

(Sourced from ET)

Indian Iron Ore Market remains Dead - Fearnleys

Friday, 04 November 11

Handy
The Atlantic market kept its strong position from last week. Even with fewer fixtures reported. Fronthauls still around 25k, with a 2-3k usd premium for vessels willing to go through Aden. USG/Skaw fixing around usd 29700, and Skaw/USG concluded in the usd 8000 range. We do believe less activity in the weeks ahead of us. The Pacific market has been dropping and it seems like it will continue to remain so due to lack of fresh cargoes and building up of tonnages. For Indo-India, large eco Supra can fetch close to usd 10k from North China position and NOPAC RV close to usd 9k. Indian iron ore market remains dead with no activity on WCI & ECi forcing vessels to ballast to RBCT and Indonesia. RBCT rounds now fixed basis APS ++BB and vessels ballasting from ECI to Indonesia fixing around usd 8k. Red Sea fertilisers to India are fixed around mid 20s. Very little activity on short period and rate is around 12k for large Supras.

Panamax
Fair activity with mineral requirements in the North Atlantic from USEC and Baltic catering for healthy levels as market is tight for prompt loaders. Fixing levels in the 20´s for Baltic rounds, upper teens for TA rounds. Less activity and weakness in the USG and ECSA from an increasing number of ballasters appears from the Med and Far East. Levels for trip out hovering in the 26 + 600 range basis APS. In the Far East activity is low, tonnage lists grow, and rates are under downward pressure. NOPAC rounds 12500, period activity scant. The general sentiment is losing confidence from a slow and descending forward market.

Capesize
After a relatively long period with improving rates, the Cape market experiences a correction mid last week. Rates kept dropping throughout this week, with West Australia/China being done just bellow usd 10 pmt. Tubarao/Qingdao was done last week around usd 32 pmt, the lowest done this week is just below usd 25 pmt. The drop in spot rates has resulted in less period activity with chrtrs aiming around mid teens, a level perceived to be of non interest to the owners. The rest of the week is remained to be quiet with Eisbein going on in Germany.

(source - Fearnleys via coalpsot)

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FIMI wants roll back of export duty hike on iron ore

Tue,8 Mar, 2011, 02.52PM IST,PTI

NEW DELHI: Hitting out at the Finance Minister for increasing export duty on iron ore, the Federation of Indian Mineral Industries has written to Pranab Mukherjee requesting a roll back to the pre-Budget level.

"We would be grateful if you consider sympathetically rolling back the increase in export duty to pre-Budget 2011-12 level," FIMI Secretary General R K Sharma wrote in a letter to the Finance Minister.

The government has quadrupled export duty on fines to 20 per cent in the Budget for 2011-12. India had shipped over 100 million tonnes iron ore in 2009-10 and 70-80 per cent of that was in the form of fines. For lumps, the duty has been raised to 20 per cent from 15 per cent earlier.

"The hike in export duty will keep the domestic iron ore industry in a suspended animation in which illegal miners would reap benefits," Sharma said, adding that such increases keep iron ore industry on tenterhooks and do not allow it to generate surplus to invest in exploration.

Indian steel makers mostly use lumps and the requirement of fines does not exceed 30 million tonnes a year as two major firms, SAIL and Tata Steel , use fines produced from captive mines. The plants, which do not have own mines, procure fines from non-captive standalone mines, including NMDC.

"To supply lumps to the domestic industry, fines have to be evacuated from mines. Since domestic demand is inadequate, only outlet is export. In the absence of an attractive export market, a large portion of iron ore produced will be wasted," Sharma wrote.

Total iron ore demand by the Indian steel companies is about 102 million tonnes against the domestic production in 2009-10, including stock-pile at the mine-heads, of 299 million tonnes.

The Railways has also raised freight on iron ore meant for exports by Rs 100 a tonne to Rs 1,600 a tonne with effect from March 1.

"The increase in export duty and railway freight have affected the iron ore industry very adversely," Sharma wrote.

Budget update - More curbs on iron ore export from India likely

Sunday, 27 Feb 2011, By ET

Steel Minister Mr Beni Prasad Verma called for curbs on exports of iron ore on Friday, as the central government heads into a budget that could raise export duty on the steel making ingredient marginally.

Mr Verma said that "Yes, I am in favor of it. There should be more control on iron ore) exports.”

Mr Vasant Poddar vice president at the Federation of Indian Mineral Industries said that "There could be a marginal hike in export duty of iron ore. These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and US consumes our low grade iron ore, other than China.”

Government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel making resource, as demand in the world's second fastest growing major economy rises.

In April last year, government raised the export duty on iron ore lumps to 15% from 10% previously. Duty on iron ore fines stood at 5%.

The ministry of railways hiked the transportation cost 50% to INR 1,500 per tonne on January 27, but kept it unchanged in Friday's Railway Budget.

Tags :raw material, steel mills, steelmaking, Federation of Indian Mineral Industries