India Plans 30% Export Duty on Low-Grade Iron Ore

ENA Sectors 2025-09-09 17:27:59 New Delhi, Sep 9 (KNN) The Indian government is planning to impose a 30% export duty on low-grade iron ore by October. The move aims to ensure affordable raw material supply for domestic steelmakers and boost the export of value-added steel products. Currently, low-grade fines and lumps are freely exported without duty, while high-grade lumps attract a 30% levy. By extending the duty to low-grade ore, the government seeks to encourage local processing and beneficiation. This aligns with Indias broader plan to increase finished steel exports to 50 million tonnes (MT) in the coming years. The decision comes at a time when iron ore prices are climbing. In August, NMDC increased prices by Rs 400 per tonne—fixing fines at Rs 5,250 and lumps at Rs 6,100. At an inter-ministerial meeting, industry representatives agreed to step up ore production, conduct transparent mine auctions, and supply ore to domestic steel plants at up to 50% below current market rates. While steelmakers welcome the proposal, miners are concerned. The Federation of Indian Mineral Industries (FIMI) plans to argue that India already has a surplus—14 MT this fiscal, possibly rising to 35 MT next year—and that duties could reduce export opportunities. Industry experts, such as former SAIL chief Anil Kumar Chaudhary, stress that cost reductions in raw materials are essential for India to compete globally. Beneficiation and pelletization of low-grade ore are seen as critical steps. However, mining specialists caution that a blanket duty could create stockpiles, cut state royalty revenues, and trigger trade disputes. Some recommend a rules-based, flexible duty system with exemptions for certain grades and periodic reviews. (KNN Bureau) 43444 https://knnindia.co.in/news/newsdetails/sectors/india-plans-30-export-duty-on-low-grade-iron-ore 2025-09-09 17:27:59 knnindia.co.in India Plans 30% Export Duty on Low-Grade Iron Ore