The government has been advised by the miners’ organization FIMI not to impose any export duties on low-grade iron ore, claiming that doing so would result in a large loss of state revenue, jobs, and foreign exchange profits. The Federation of Indian Mineral Industries (FIMI) made a representation to the government stating that the imposition of an export levy on low-grade iron ore fines and pellets in May 2022 had a negative effect on the mining industry.
But in November of the same year, the administration removed the tax. Iron ore is one of the non-coal minerals that contributes significantly to the mining sector’s GDP in the nation. About 5 lakh people are employed as a result of iron ore mining 45,000 directly and 4,50,000 indirectly, according to the report.
China receives more than 90% of all iron ore exports from the nation. “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 mining association stated. The ability to produce iron ore is anticipated to increase to 330 million tonnes in FY’25 due to the opening of new mines and the development of current operations.
However, it stated that production would decrease to 225 million tonnes in such a situation if iron ore exports were prohibited or subject to duties. Merely 25–30% of the iron ore mined is produced in the form of lumps; the other iron ore is extracted as fines. “The fines below 58 percent Fe are required to be kept in the mining lease area only as these cannot be utilized by the steel industry, especially the secondary steel sector,” it stated.
