FIMI wants status quo maintained in iron ore exports

New Delhi, Nov 2 (UNI) The Federation of Indian Mineral Industries (FIMI) has urged the government to maintain the status quo on iron ore exports.

Addressing newsmen here today, the federation Secretary General R K Sharma said presently only 25 per cent of the mines are under captive operation while the balance 75 per cent are under non-captive catagory.

He said under this situation if the government puts a ban on exports of iron ore than the industry would have two options either to close down or operate at the mercy of the domestic steel industry.

He said the government can not take a decision which would affect the major segment within the industry.

He said ''if we assume that our iron ore resource is very limited and assuming more than 300 million tonnes (MT) annual additions so far in last 25 years, resources to last 110 years if steel production level goes upto 110 MT by 2020 and 75 years if the steel production capacity goes upto 200 MT by 2020.'' He pointed out that even the Hoda committee had recommended to the government that it is in the best interest of the country to provide space for both stand-alone as well as captive mines for proper utilisation of iron ore resources.

Mr Sharma said the Hoda committee has further pointed out that the steel capacities already in existance as on July one, this year which do not have captive mines, to be allocated fully prospected by public agencies iron ore mines without auction procedures as a one-time measure.

The existing regime of canalisation and export licensing to be discontinued and an export duty levied on export of iron ore lumped of over 65 per cent iron content.

He said the committee's wish was to encash on exports while spot market, expected to peter out in next 2 to 3 years, still exists and the position to be reviewed every after ten years.

Mr Sharma said that the current phase of higher demand is mainly due to increasd demand from China.

He said FIMI is of the view that the mines closed in Chitradurga-Thumkur in Karnataka and Reddi area in Maharashtra should be opened up. The optimum utilisation of production capacities in Bellary-Hospet, eastern sector and Goa would further improve the availability of iron ore in the country.

He said in order to boost the trade and more specially to iron ore exports the government should opened up the closed ports of Karwar, Bellikeri, Reddi, Kakinada and Haldia.

Apart from this the optimum utilisation of port capacities at Chennai, Goa, New Mangalore, Paradeep and Visakhapatnam would further improve the country's external trade, he added.

He said by trading iron ore mining and steel making as two activities and promoting both, combined value would be higher than what would be obtained by making one activity subservient to the other.

He said while China imports iron ore and ciking coal at the same time it is exporting huge quantities of other minerals like mangnesite, molybdenum, met coke and tungsten.

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