KIOCL looking at iron ore mines in Mozambique

Tue, Oct04, 2011

state owned KIOCL Ltd is looking at iron ore mines in Africa as part of its expansion plans and to address its resource security.

Mr K Ranganath CMD of KIOCL Ltd said “It is in a preliminary stage. We have received some proposals from owners of land in Mozambique that contain magnetite deposits. We are sending a team of officials next week to look at these deposits.”

He was speaking to reporters after the Steel Minister Mr Beni Prasad Verma reviewed the company quarterly performance. Further, Mr Ranganath said the company proposed expansion plans in India have taken a back seat in the aftermath of disruption of iron ore supplies from NMDC following the ban on mining in Bellary.

The company was looking to set up ductile iron spun pipe plant and install a coke oven battery besides setting up an integrated steel plant.

KIOCL relies on NMDC for its iron ore supplies which are converted into pellets at its plant in Mangalore. Despite the challenges on the raw material supplies, the company produced 0.396 million tonnes of pellets against the targeted 0.516 million tonnes.

(sourced from TheHinduBusinessline)

May hike export duties on iron ore exports: Steel minister

Mon,Aug29, 2011 | Source PTI


Government today said it may further increase duties on iron ore to discourage its export in order to keep it for meeting domestic demands.

"We have increased export duty from five per cent to 20%. We may increase it further," Steel Minister Beni Prasad Verma told the Lok Sabha during Question Hour.

Verma said government was discouraging export of iron ore and trying to keep it for domestic consumption.

Nearly 50% of the iron ore produced in the country has been exported over the last three years, he said.

In 2008-09 212.96 million tonnes (MT) of iron ore was produced of which 105.86 MT (49.7%) was exported and in 2009-10 218.64 MT ore was produced and 117.37 MT (53.7%) was exported, Verma said.

He said in 2010-11 the estimated production was 208.11 MT of which 97.66 MT (46.9%) was marked for export.

"The production of iron ore in the country is about to double the consumption of iron ore by the domestic iron and steel industry and therefore is sufficient to meet the present requirement of iron ore by the steel sector in the country,"
he said.

As regards iron ore supply to PSUs, Steel Authority of India Limited (SAIL) has is own captive mines which cater to its full requirement of iron ore, he said.

Verma said the requirement of iron ore of other PSUs - Rashtriya Ispat Nigam Limited and KIOCL Ltd - is fulfilled by National Mineral Development Corporation.

Budget update -Indian steel companies cheer iron ore export tax hike

Tuesday, 01 Mar 2011

India's steel industry cheered the 20% export duty hike on iron ore in the FY12 federal budget that will help contain escalating raw material costs and gave thumbs up to higher infrastructure spends, which will boost steel demand in the country.

Mr CS Verma chairman of Steel Authority of India said that "Higher export duty on iron ore has been a long pending demand of the steel industry and the budget has taken care of the issue.”

Mr H M Nerurkar MD of TATA Steel said “The increase in export duty is a step in the right direction but the exemption of duty on pellets also reduces the scope for greater value addition within the country. The value addition at pelletization stage is much less as compared to finished steel stage and aim should be to encourage steel production within the country, which would lead to more jobs, output and value addition within the country.”

Mr Sajjan Jindal vice CMD of JSW Steel hailing the move said this would lead to greater value addition at home and encourage domestic steel industry.

Mr K Ranganath CMD of KIOCL observed that iron ore is a natural resource which needs to be conserved. He said “Export of a value added product from iron ore will not only generate value in export but also provides higher scope for employment and generation of wealth in the value added industry.”

Mr Nittin Johari CFO of Bhushan Steel said that "The increase in export duty on iron ore will increase its availability in the domestic market, thereby stabilizing price and helping domestic steelmakers.”

Mr Ankit Miglani director at Uttam Galva Steels said that "There is nothing dramatic but there are more positives for the steel sector in this budget than negatives.”

(sourced:ET and PTI)