Current Affairs

Union Mines Ministry seeks Lower Export Tax to clear dumps

The Union Ministry of Mines has made a recommendation to the government to lower the 30 per cent export tax for low grade iron-ore in order to clear stockpiles (dumps) amid growing demand and prices in China.

The recommendation has been made to the Union Ministry of Finance. Sources in the MoM have told that this decision has been taken acknowledging the fact that the local industry rarely utilizes low grade iron-ore and the stockpiles are only increasing. “A lower tax on exports could help companies ship these stocks out,” expressed Vishwapati Trivedi, secretary-mines, MoM.

Low-grade Indian fines are used mostly by steelmakers in China that have the facility to use them in their furnaces. Indian mills typically use high-grade lumps.

Goa, which exports more than half of India’s iron ore, banned all mining after Shah Commission report exposed that the government lost an estimated Rs 34,935 crores because of illegal mining. Goa is expected to permit exports of the material from the first week of October.

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