ASSOCHAM, an national industry body exposes lies of Goan mine owners: http://www.assocham.org/prels/printnews.php?id=2777 Leading industry body ASSOCHAM has called for discouraging iron ore exports by increasing export tax on fines and lumps from five per cent and 15 per cent to uniformly 30 per cent of the FoB price. This will lead to a revenue generation of Rs 20,000 crore. India produced 215 million tonnes of iron ore in 2008-09 and exported 106 million tonnes of it. Of the 129 milliion tonnes of fines produced, 92 million tonnes were exported. In the case of lumps, the production was 86 million tonnes while exports totalled 14 million tonnes. Private iron ore miners have created a myth that fines are in excess as the steel industry is not equipped to use them. “This is a total distortion of facts as most integrated steel plants use sinter and pellets where fines are used extensively,” said Mr D.S. Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM). The iron and steel industry consumed 63.41 million tonnes of iron ore fines and 31.79 million tonnes of iron ore lumps in 2008-09. After accounting for domestic consumption, only 65.5 million tonnes is left for exports. But export data shows India exported 92 million tonnes of fines in the same period. There is clearly a mismatch of production and exports. “To save duty, lumps are being converted into fines for exports to China. The analogy of mining industry that fines are unutilised in the country is totally inappropriate and baseless,” said Mr Rawat adding the production of iron ore was increased solely to cater to Chinese market. The export of iron ore is also promoting illegal mining in the country with profits going to mine owners who have little social and environmental concerns. If there is restriction on exports, all fines will be consumed by the expanding steel industry. India has 25.6 billion tonnes of iron ore reserves scattered across Jharkhand, Orissa, Chattisgarh, Karnataka and Goa of which only seven billion tonnes are proven and the rest probable and possible. In terms of per capita reserves, India scores only 21 tonnes in comparison to Brazil’s 333 tonnes, the Russian Federation’s 389 tonnes and Australia’s 2,000 tonnes. ASSOCHAM said the government should ban iron ore exports in a phased manner with a complete restriction by 2015-16.
