The Federation of Indian Mineral Industries (FIMI) has urged the government to refrain from imposing any export duty on low-grade iron ore, warning that such a decision would result in resource wastage, adversely affect mining operations, lead to job losses, and cause environmental harm due to the accumulation of unusable fines at mining sites. In a recent letter addressed to Commerce and Industry Minister Piyush Goyal, FIMI emphasized the necessity for effective utilization and monetization of low-grade iron ore to enhance its availability for the domestic steel sector. They highlighted that the Indian steel industry predominantly requires high-grade iron ore (over 62% Fe), with minimal demand for low-grade fines domestically.
This has resulted in significant quantities of low-grade material, especially fines from mining activities, being left stranded at mine sites or in old dumps. While a limited amount is used in pellet production, most remains unutilized. This scenario not only raises environmental concerns but also hampers scientific and sustainable mining practices, as these fines cannot be removed from mining lease areas unless they are exported. Exporting these fines is mutually beneficial, as it promotes scientific mining methods, prevents mine closures, protects jobs, and generates foreign exchange.
