Orissa favours ban on iron ore exports
India's top iron ore producer Orissa is considering proposing a ban on exports of the key raw material for steel, state government officials said on Tuesday.
January 12, 2011 / 08:32 IST
India's top iron ore producer Orissa is considering proposing a ban on exports of the key raw material for steel, state government officials said on Tuesday.
India, the world's third-largest iron ore exporter, sells about half of its 200 million tonnes of annual output, mainly to China, which has the world's biggest steel industry.Traders say any ban on iron ore exports from Orissa will stoke global prices and force China to increasingly depend on supplies from Australia and Brazil."The state government is considering to send a proposal to the centre seeking a ban on export of iron ore or iron ore fines and chrome ore from the state," Orissa's Steel and Mines Minister Raghunath Mohanty told local television channel Orissa TV.A senior official at the state mines department said the proposal was being looked at by Chief Minister Naveen Patnaik."The proposal is with the chief minister. The export policy is governed by the centre. Therefore, it has to be sent to the centre," he said.The official, who did not wish to be identified, said the move was being considered to meet the domestic demand for the steel making raw material.India's top iron ore producerIndia's steel industry has frequently lobbied for a ban on iron ore exports so that more of it is available at lower costs.India produced more than 60 million tonnes of steel in the fiscal year to March. Growing demand from infrastructure and consumer durable sectors mean the country has to produce more.Southern state of Karnataka banned exports of iron ore from 10 ports and stopped its movement to other ports for exports in July, citing a drive against illegal mining and the need to preserve the raw material for local use. Iron ore exporters and miners have challenged the ban and hearings are likely to take place this month. In 2009/10, India exported 117.37 million tonnes of iron ore from a total output of 226 million tonnes, but this year, exports are seen declining by a quarter or more due to the ban in Karnataka.South Korea's POSCO and Arcelor Mittal, the world's biggest steel maker, have plans to build steel plants in India but their projects are mired in regulatory, environmental and land acquisition hurdles.Projects also get delayed due to a tussle between Congress led government and opposition ruled mineral-rich states such as Orissa and Karnataka.The office of Prime Minister Manmohan Singh, largely viewed as pro-industry, has set up a special cell to deal with the issue and help speed up clearances for upcoming plants. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
