Exports of iron ore has declined: FIMI

New Delhi, Mar 21 (UNI) The Federation of Indian Mineral Industries (FIMI) today denied reports that despite the imposition of a cess on the export of iron ore, its exports has surged by 34 per cent as claimed by the Indian Shippers Association (ISA).

FIMI in a press statement issued here stated that in fact the exports in March 2007 including the balance days are down in some cases by 66 per cent and on an average 50 per cent.

The federation, however, admitted that the 10 per cent increase is limited to first 11 months of the current financal year.

It said normally during the month of March there is more nominaton of vessels particularly by steel companies/countries who have entered into long term contracts, which includes even the spill-over from February as well. This is because of the fact that from April 1 onwards, new internatonal prices become applicable. Also, prior to imposition of export duty, some vessels had already beennominated wich were loaded in March 2007.

The federation says that the imposition of export duty is not a force majeure clause. Nomination of vessels is made at least one month in advance.

FIMI further claimed the movement of iron ore frm mines to the ports in Eastern sector has almost come to a standstill.

The FIMI also says that the production of fines to the total production in 2005-06 as per Indan Bureau of Mines (IBM) was 60 per cent.

UNI