News

            NEW DELHI, DEC.30: THE impostion of an additional 5 per cent export duty on iron ore will make exports uncompetitive, it is feared.

            The government had recently raised the export tax on iron ore lumps to 10 per cent from 5 per cent, levied  a 5 per cent tax on the fines.

           Mr Siddhartha Rungta, President of the Federation of Indian Mineral Industries, calculated that these would increase the cost of exports by $3.50 a tonne.

           Currently, the average price of ore, with 63.5 per cent iron content, is around $80 a tonne. Its exports more than doubled in October to 9,325 million tonnes from 4.26 million tonnes a year ago, largely due to increased Chinese demand.

            Faced with input shortages in coking coal and natural gas, ore producers had sought higher export duties to ensure ample supply as almost half of the country’s output had been exported.