Special Correspondent
Daijiworld Media Network - Goa

Panaji, Nov 14: The blanket ban on the export of iron ore would affect the steel industries in India and force closure of the captive mines, fears country’s leading federation of mineral industries.

The Federation of Indian Mineral Industries (FIMI) in their letter to union government has said that the availability of iron ore in the domestic market will plunge if exports are banned.

FIMI Secretary R K Bansal in the letter written to Joint Plant Committee Union Ministry of Steel on November 4, has affirmed that there should be no blanket ban or qualitative restriction on ore exports. The mining industry in Goa fears stoppage of the exports once Justice M B Shah Commission report is submitted to the centre.

Bansal expressed concern as the Shah Commission is expected to submit its final report on Goa within few days now. He pointed out that existing iron ore is much more than the requirement of steel industry at home and a ban on export will mean that most of the non-captive mines will get closed with consequent adverse impacts on local economy, employment as well as state revenues Bansal has feared.

FIMI an umbrella organization for mineral industry has contended that due to discontinuation of mining further exploration will also come to the halt and therefore no further addition to reserves and resources can happen.

They have said that with discontinuance of non captive production, the availability of lumps and high grade fines to the steel industry will get reduced, thus proving counter productive to the interests of the steel industry.

The federation also demanded that export duty should not be imposed, since exports provide cushion against fluctuation in demand and prices in the domestic market and vice-versa.

FIMI has said that there should be no captive mines allowed to any steel plant since the domestic iron ore production is already surplus to the domestic demand and will continue to be so for next few years. They have urged the union government to develop iron ore mining as a standalone mining industry, separate from steel industry so that both could grow to benefit from each other’s strength and innovations rather than take shelter behind the safety net available.