Govt plans a balancing act on iron ore exports

KOLKATA: The Union government is keen on restricting iron ore exports from the country. It wants to strike a balance between the interests of domestic steel companies, who insist on being allotted captive iron ore mines, and standalone mining companies.

“We are trying to ensure there is space for both standalone mining companies as well as steel companies who require captive iron ore mines,” Anwarul Hoda, member, Planning Commission said in Kolkata on Wednesday.

Mr Hoda, who headed a high-level committee constituted by the government on iron ore was speaking at the inaugural session of the 8th International Mining Machinery Exhibition (IMME). Australia is the partner country at IMME this year.
“We have also recommended that mineral-rich states, which have received multiple applications, should not be holding up mining licences and can give priority to some projects, which insist on value addition within the state,” Mr Hoda said.

Mr Hoda’s comments struck a chord with West Bengal chief minister Buddhadeb Bhattacharjee, who was also present at IMME’s inaugural session. Mr Bhattacharjee has been insisting on resource-sharing between states. In the recent past, West Bengal, which has adequate coal reserves, but lacks iron ore has faced opposition from neighbouring Jharkhand on the question of sharing iron ore.

The project in question was a proposal by JSW Steel to set up an integrated steel plant in West Bengal, in which the Jindals planned to source iron ore from Jharkhand.

Mr Bhattacharjee said the central government should come out with a clear cut policy on iron ore. “There should be limits on exports of ore, keeping in mind the future needs of or steel industry,” he said during his address.
Australia’s minister for industry, tourism and resources, Ian Macfarlane was also present at the occasion.

The chief minister had a discussion with Mr Macfarlane earlier in the day on how Australian mining companies can assist in exploiting deep seam coal from underground mines in the state. Mr Macfarlane said Australia was well-equipped to provide niche mining equipment and technology in coal washery that could be of use to West Bengal.

Mr Macfarlane, who is leading a 70-member strong Aussie delegation to IMME this year, also made a pitch for inward investment into Australia by Indian companies.