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FIMI seeks withdrawal of export duty on iron ore

All the mines of Goa, which have been exporting iron ore of less than 58% iron content, are closed since March 2018 and hence, no export of such iron ore is affected from Goa.

The Federation of Indian Mineral Industries (FIMI) has urged the government to withdraw a 30% export duty on iron ore with 58% or more iron content. In a pre-Budget memorandum to the finance ministry, the federation said due to high incidence of export duty, exports have nearly halved to 57.22 million tonne (MT) in 2020-21 compared with 117.37 MT in 2009-10.

There is no export duty on iron ore up to 58% iron content. The government abolished duty on such grade in the steel-making raw material in the Budget for 2016-17.

Export duty on ore above 58% iron content has been on the continuous rise. From nil duty in FY09, it went up to 5% in FY10 and then to 20% in March 2011 and finally to 30% in December 2011.

“Such high duty has rendered exports unviable,” FMI said.

As a result, mined ore is getting accumulated at the mine-heads, mainly in Jharkhand and Odisha. Most of the 121 MT iron ore lying at the mine-heads are in the grade of 58%-62% iron content.

All the mines of Goa, which have been exporting iron ore of less than 58% iron content, are closed since March 2018 and hence, no export of such iron ore is affected from Goa.

“Abolition of export duty on iron ore having more than 58% iron content will help in liquidating to a large extent of the huge stockpile of iron ore at mine-heads which will result in enhanced foreign exchange earnings besides more production of iron ore in the country,” FIMI said.

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