The domestic mining industry on Thursday said lowering the export duty on iron ore fines would not help much in reviving its fortunes as the burden of taxes, freight and high royalty has hit it hard.
In the Finance Bill 2015, finance minister Arun Jaitley lowered the export duty on iron ore fines or lower grade ore (with 58 ferrous content) to 10 per cent from the earlier 30 per cent ad valorem while maintaining the same duty for high grade ore needed by the domestic steel manufacturing companies.
But the federation of Indian mineral companies (FIMI), the umbrella body of miners, said the unusually high burden of taxation, increased railway freight, high royalty, contribution to the district mineral foundations and other factors have already eaten into the margins of the miners. “Lowering this export duty would not translate into increased margins for the mining community,” FIMI secretary general R K Sharma told The Indian Express.
The move is aimed at helping Goan miners, who have closure of mines He argued that iron ore prices “have already touched rock bottom” and global mining giants like Rio Tinto and Vale are offering high quality iron ore at lower prices making the ore supply market further competitive.