Steel firms seek ceiling on iron ore exports

NEW DELHI: Leading steel makers including Tata Steel and JSW today sought a ceiling on iron ore exports as the export duty on iron ore was not enough to discourage mining companies from selling the mineral overseas.

"There is need for more stringent and specific measures like a quantity ceiling to make sure that we conserve our ore to give fillip to value addition within the country," said, Tata Steel Managing Director B Muthuraman..

The of Finance Minister P Chidambaram is in the interest of the country and should be commended, he added.

Chidambaram had in the budget proposed to levy an export duty of Rs 300 per tonne on export of iron ore. The decision was opposed by mineral producers who argue the government could lose revenue of up to Rs 5,000 crore on this account. However, steel producers have been demanding a ban on exports.

Sajjan Jindal, Vice-Chairman and Managing Director of Jindal South West Steel, also pointed out it would be "disastrous" if ore was allowed to be exported unabated in view of the capacity expansion announced by the steel majors.

"Value addition should be legally enforced to curb exports of iron ore. The proposed export duty could slow down ore exports but would not curb it as the miners would continue to do so under long term agreements," he said.

He said they would continue to earn profits through spot prices as China's demand for ore has registered an increase.

The steel industry has alleged that the government would lose revenue worth Rs 30,000 crore by allowing ore exports.