NEW DELHI:: Terming restrictions on export of iron ore "inimical to the growth of the mining sector", mines minister Sis Ram Ola has sought Prime Minister Manmohan Singh's immediate intervention in reviewing the duty imposed on the export of the mineral. The restrictions were also affecting a number of workers in the industry employed directly and indirectly in remote areas of the country, Ola said in a letter to the Prime Minister.

"Keeping in view the health of mining industry and its attractiveness for investments, the present policy of export duty on iron ore needs an immediate review. I would accordingly request your immediate attention," Ola wrote to the PM.

He argued that restrictions on export had little impact on steel prices in the country as all major steel producers had captive iron ore mines and the mineral was available to them at cheap rates. "Our ministry is, therefore, of the view that steel prices are not vastly influenced by iron ore prices, but rather by cost of other raw materials such as coal and coke, and freight costs," Ola said. He said domestic steel prices also depended on demand-and-supply situation in the international markets.Pointing out that iron ore export mostly constituted fines which did not have potential for full utilisation in the country, Ola cited that out of 100 million tonne (MT) of fines produced, only 41 MT are consumed by the domestic industry.