By Our Correspondent
NEW DELHI/BHUBANESWAR: Following a complaint by the Indian Steel Association about shortage of iron ore, after seeking intervention of Union Commerce and Industry Minister Piyush Goyal, Federation of Indian Mineral Industries (FIMI) has written to Union PNG-Steel Minister Dharmendra Pradhan citing that stockpiles at mine-heads are increasing and not allowing their export will amount to complete wastage of a material which can earn valuable foreign exchange for the country.
At present the country requires around 165 million tonnes of iron ore as against production of 206 million tonnes of the main ingredient used in steel making, FIMI said in a letter to Union Minister Pradhan. “As the Indian Steel Association letter points out the fall in production in Odisha because of the inability of the new lessees to produce as per the auction condition. If the steel mills buy iron ore from the stocks lying at the mines heads, there will be no shortage and no exports,” FIMI said.
“In Odisha , iron ore lying unsold at mines heads , is near about 94.13 million tonnes while total figure is 162.85 million tons comprising States of Andhra Pradesh, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Maharashra, Odisha, Rajasthan and Telagana,” FIMI said. “In fact, a steel plant in Karnataka has been importing iron ore to depress the domestic prices despite having huge stockpile of iron ore at the mines heads. The FIMI allegation was intended to Sajjan Jindal’s JSW Steel,” FIMI said.
“The stockpiles at mine-heads are increasing year after year. If there is no demand for such iron ore from steel and sponge iron plants in the country and miners are not allowed to export, this material will be washed away and go into rivers and rivulets during the rainy season.This will be an utter waste of material for which we can earn money and add to our GDP,” the letter said.
“There is export duty on the exports of iron ore +58 per cent Fe. If the steel industry purchases this iron ore, there will be no necessity to export,” it said.It further said if steel usage is promoted in the country by removing the import duty on it, the domestic user will get cheaper and better grade of steel.
