CCI Recommends Restricting Iron Ore Exports, Advocates Sustainable Mining Practices

New Delhi, Jan 2 (KNN) The Competition Commission of India (CCI) has advised against endorsing the exports of iron ore from the nation, given its non-renewable nature, in a new Market Study on Mining Industry released on Monday.

Instead, the CCI recommends adopting the Chinese strategy of importing iron ore, despite China being a leading global producer, a move that has propelled China to become the world's top steel manufacturer.

“By discouraging such (iron ore) exports, we can enhance the domestic supply,” the study stated.

It is crucial to consider the potential depletion of this non-renewable resource and its impact on future generations, it added.

As India transitions towards Aatmanirbhar Bharat, the study suggests prioritising the export of higher value-added products, such as finished steel.

To address the accumulation of low-grade iron ore, the study recommends the implementation of cutting-edge technologies for upgrading through beneficiation processes once iron ore exports are discouraged.

CCI highlights the government's efforts in regulating the outward movement of national wealth by periodically changing the export duty structure for the iron ore sector.

While the export duty on low-grade iron ore, pellets, and specified steel products was removed from November 19, 2022, a reduced export duty of 30 per cent applies to high-grade lumps and fines containing over 58 per cent iron.

The study stresses the necessity of strict control over the over-exploitation of iron ore due to its significance as a non-renewable national resource.

Emphasising sustainable mining practices, the study calls for a well-defined regulatory framework to phase out 'dirty' technologies gradually.

It proposes incentives for adopting clean technology and transforming existing production processes into sustainable modes.

(KNN Bureau)