Iron Ore Exports Duties

To facilitate greater domestic availability, the duty on exports of iron ore has been hiked by up to 50 per cent by the Government

Shares of the company, controlled by billionaire Anil Agarwal, rose as much as 3%.

India said on Monday it would raise the import duty on aluminium but cut the export tax on low grade iron ore, a move that would benefit Vedanta Ltd the most as it is a big producer of both commodities.

Prices are so low now that exports are not viable, a top official said.

The government has scrapped a 5 per cent duty on exports of iron ore pellets to make overseas shipments competitive amid a sharp fall in the world price of the steelmaking raw material, a government order showed on Tuesday.

The Mines Ministry has written to the Finance Ministry to propose scrapping a 5 per cent export duty on iron ore pellets, Mines Secretary Balvinder Kumar told Reuters, adding that the government could also look at abolishing duty on low-grade iron ore.

Goa on Monday sent out its first export consignment of iron ore after the lifting of the mining ban in the state with Chief Minister Laxmikant Parsekar saying he would do everything possible to help the industry and also ask the Centre to remove a 10 per cent duty on these exports.

The new duty structure will be applicable from June 1, Mr Jaitley told the Parliament.

Goa is expected to resume iron ore production by April after action against illegal mining kept the industry shut for over two years. The state has about 8 million tonnes of ore waiting at ports that has not got a buyer due to 30 per cent duty.

India imposed a 5 per cent duty on exports of iron ore pellets late last month, taking another step in conserving the raw material for domestic steelmakers that has slashed its shipments to top market China.

India already levies a 30 per cent tax on exports of iron ore fines and lumps since December 2011. Along with mining and export curbs in key producing states Karnataka and Goa aimed at addressing illegal mining, the tariffs have helped cut India's iron ore exports by around 85 per cent, or 100 million tonnes, over the past two years.

But speaking at a meeting of exporters in Mumbai on Friday, Chidambaram said there was a need to maintain the current duty but did not elaborate. In response to a question on the duty, he said there was "no case to roll back".

Asia's third-largest economy is desperately looking for ways to raise foreign currency inflows and arrest a steep fall in the rupee, which has been hitting new lows nearly every day.

Ahead of the Budget, Mines Ministry has sought from the Finance Ministry reduction of export duty on low grade iron ore by 50 per cent to boost production to enhance export of the mineral.

A 30 per cent export duty imposed by the government led to a further drop in overseas sales, making Indian ores less attractive compared with Brazil or Australia.

To facilitate greater domestic availability, the duty on exports of iron ore has been hiked by up to 50 per cent by the Government

Shares of the company, controlled by billionaire Anil Agarwal, rose as much as 3%.

India said on Monday it would raise the import duty on aluminium but cut the export tax on low grade iron ore, a move that would benefit Vedanta Ltd the most as it is a big producer of both commodities.

Prices are so low now that exports are not viable, a top official said.

The government has scrapped a 5 per cent duty on exports of iron ore pellets to make overseas shipments competitive amid a sharp fall in the world price of the steelmaking raw material, a government order showed on Tuesday.

The Mines Ministry has written to the Finance Ministry to propose scrapping a 5 per cent export duty on iron ore pellets, Mines Secretary Balvinder Kumar told Reuters, adding that the government could also look at abolishing duty on low-grade iron ore.

Goa on Monday sent out its first export consignment of iron ore after the lifting of the mining ban in the state with Chief Minister Laxmikant Parsekar saying he would do everything possible to help the industry and also ask the Centre to remove a 10 per cent duty on these exports.

The new duty structure will be applicable from June 1, Mr Jaitley told the Parliament.

Goa is expected to resume iron ore production by April after action against illegal mining kept the industry shut for over two years. The state has about 8 million tonnes of ore waiting at ports that has not got a buyer due to 30 per cent duty.

India imposed a 5 per cent duty on exports of iron ore pellets late last month, taking another step in conserving the raw material for domestic steelmakers that has slashed its shipments to top market China.

India already levies a 30 per cent tax on exports of iron ore fines and lumps since December 2011. Along with mining and export curbs in key producing states Karnataka and Goa aimed at addressing illegal mining, the tariffs have helped cut India's iron ore exports by around 85 per cent, or 100 million tonnes, over the past two years.

But speaking at a meeting of exporters in Mumbai on Friday, Chidambaram said there was a need to maintain the current duty but did not elaborate. In response to a question on the duty, he said there was "no case to roll back".

Asia's third-largest economy is desperately looking for ways to raise foreign currency inflows and arrest a steep fall in the rupee, which has been hitting new lows nearly every day.

Ahead of the Budget, Mines Ministry has sought from the Finance Ministry reduction of export duty on low grade iron ore by 50 per cent to boost production to enhance export of the mineral.

A 30 per cent export duty imposed by the government led to a further drop in overseas sales, making Indian ores less attractive compared with Brazil or Australia.