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Last Updated : Jun 17, 2019 12:38 PM IST | Source: PTI

PMAI seeks higher duty on export of iron ore with over 58% Fe content

In a letter to the PMO, PMAI has asked "for an an increase in export duty on iron ore of +58 plus Fe content from current 30 percent to 50 percent."

Representative Image
Representative Image

Industry body Pellet Manufacturers Association of India (PMAI) has asked the government to increase export duty on iron ore with more than 58 percent iron content by 20 percent.

In a letter to the Prime Minister's Office (PMO), PMAI has asked "for an an increase in export duty on iron ore of +58 plus Fe content from current 30 percent to 50 percent."

Export of 58 percent plus Fe iron ore without value addition need to be discouraged, PMAI said adding that use of technology can also help in meeting the shortfall of required grade for steel making in India.

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Iron ore with less than 62 percent iron content is used for pellet manufacturing. Iron ore pellets are value-added products of leftover material or low-grade iron ore and are used in steel-making.

PMAI President Manish Kharbanda, in the letter, said India has 85 mtpa of pellets and 115 MTPA of beneficiation capacity, bulk of which is idling for want of iron ore at reasonable price.

He said iron ore with less than 62 percent iron or Fe content can be utilised by pellet makers.

The body said local steel industry required about 157 MT of over 62 percent grade iron ore to produce 98 MT of crude steel in the FY2017 but production of such ore was only 127 MT.

The shortfall of 30 MT was met through blending 5.8 MT of high grade imported ore and beneficiation of below 62 percent grade iron ore, it added.

At present, India is the second largest producer of steel in the world, next to China only with 134 mtpa steel capacity.

Whereas present requirement of iron ore is over 200 mtpa, it will go up to 480 mtpa by year 2030, when the country has plans to produce 300 mtpa of steel.

The PMAI said it fears that if export continues and encouraged further, it could affect the aim of producing 300 MT steel by 2030.

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First Published on Jun 17, 2019 12:25 pm
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