India proposes to remove the export duty on low-grade iron ore fines and lumps in an effort to make local mining companies competitive at a time when global prices have fallen sharply.
“Export duty on iron ore fines with Fe content below 58 percent has been proposed to be reduced from 10 percent to nil while export duty on iron ore lumps with Fe content below 58 percent will be brought down to nil from 30 percent,” Finance Minister Arun Jaitley said in his budget proposals.
The government has been under pressre from miners, specially in Goa, to reduce the export duty to revive the mining industry hit hard by decade-low prices of commodities.
There is a 30 percent export duty on iron ore fines with Fe content of 58 percent and above and 10 percent for below this content. For iron ore lumps, the duty is a flat 30 percent.
Current price for iron ore is around $39-40 a tonne and the proposed reduction in export duty will help Indian miners sell their products overseas and cut their losses.