Iron ore export duty cut of 10% not a big relief: FIMI

The government Thursday cut iron ore export duty to 10 percent from 30% for certain categoriesRK Sharma, FIMI in and interview to CNBC-TV18 said basically this applies to low grade iron ore and miners in Goa may stand to benefit a little but no benefit for miners in rest of the country. So, not a big relief, he said.Moreover, with international prices already depressed and demand being low there is a doubt there would be buyers.Below is the transcript of RK Sharma’s interview with CNBC-TV18’s Surabhi Upadhyay and Nayantara Rai.Surabhi: The export duty now has been reduced from 30 percent to 10 percent but only for low grade ores, how do you react to that?A: Goa miners pay 10 percent on iron ore research and development set by Supreme Court, 30 percent of district mineral fund, 2 percent for exploration, so with 52 percent going in the duties and taxes the miners are left only with 48 percent and out of that 48 percent they have to mine, they have to move the material from the mines to the port, to the jetty point. From Jetty to the port they have pay port charges, charges for loading into the vessels. I am doubtful whether any substantial export will take place even with this reduction of export duty to 10 percent. Surabhi: Since this applies only to low grade ores I am supposing it is only miners in Goa who really stand to benefit, would that be a right assessment?A: Yes that is the main thing but for rest of the country the question doesn’t arise. When the prices are so depressed in the international market I doubt whether there is any market for it.Surabhi: I was just coming to that point that even if reduce export duty are there any buyers out there, even Chinese growth has slowed down -So, what is your outlook for the iron ore sector if this is any kind of a relief?A: I doubt whether there will be any relief.