FIMI Urges Against Export Duty on Low-Grade Iron Ore
FIMI has appealed to the government to avoid imposing export duties on low-grade iron ore. The organization warns that such a move could lead to resource wastage, environmental harm, and impact mining employment. It argues exporting low-grade ore helps maintain scientific mining and supports economic stability.
- Country:
- India
The Federation of Indian Mineral Industries (FIMI) has made a formal appeal to the government, urging them not to impose an export duty on low-grade iron ore. In its letter to Commerce and Industry Minister Piyush Goyal, FIMI emphasized that such action could result in significant resource waste, job losses in the mining sector, and potential environmental consequences due to stockpiling of unused fines at mining sites.
FIMI pointed out that the domestic steel industry primarily uses high-grade iron ore (greater than 62% Fe), leaving an insufficient market for low-grade fines within India. The body noted that most low-grade material, particularly fines from mining, is either stranded at mining sites or stored in old dumps, thus creating environmental challenges and hindrances to sustainable and scientific mining practices, as these fines cannot be moved without export.
FIMI highlighted India's substantial iron ore resources and a growing production capacity, underscored by the rise in crude steel production from 103.54 million tonnes in 2020-21 to 152.18 million tonnes in 2024-25. It emphasized that exporting low-grade iron ore is not only crucial for scientific mining and preserving employment but also brings in foreign exchange, thus benefiting the economy.
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