Possibility of Higher Duties on Indian Iron Ore Exports

Posted in Industry News on 12th September 2011 |

Officials in India are looking at adding an extra 5 to 10% onto the current export duties on iron ore of 20%.

Currently, almost half of India's iron ore production is exported and there is a fear that further increases will make Indian miners increasingly uncompetitive.

Opponents of any further increase are the National Department of Commerce and the World Trade Organisation.

This news follows on from recent developments in India's major iron ore region of Karnataka which is still banning iron ore exports despite the national supreme court order to lift it.

Karnataka Export Ban Timeline: -

July 2010 - The iron ore export ban was first imposed by the state government to combat illegal mining.

April 2011 - India's national supreme court orders export ban to be lifted, stating that it unfairly penalises legal mining and exporting.

19th August 2011 - A ban on mining in three districts of Karnataka was recommended by a court panel.

It is expected the Karnataka state government will issue export permits once they have better control of illegal mining and a new system for export permits but there is no clear idea of how long this will take.

The situation has created a lot of uncertainty and problems for the iron and steel industry in the region, with major plants forced to operate at reduced capacity.

Tags: Illegal Mining, India, Iron Ore, Karnataka, Tariffs, World Trade Organisation (WTO)