FIMI for zero export duty on low-grade iron ore

Miners’ body FIMI has requested the government not to impose any export duty on low-grade iron ore, asserting that any such move would lead to resource wastage, severely impact mining operations, reduce employment, and cause environmental damage due to stockpiling of unusable fines at mine sites. In a recent letter to Commerce and Industry Minister Piyush Goyal, the Federation of Indian Mineral Industries (FIMI) said, “To have effective utilisation and monetisation of low-grade iron ore and enhanced availability of iron ore for the domestic steel industry, we humbly submit that no export duty be imposed on exports of low-grade iron ore.”

FIMI stated that the domestic steel industry currently consumes only high-grade iron ore (+62 per cent Fe), and there is virtually no demand for low-grade fines within India. The accumulated low-grade material, particularly fines generated during mining, remains stranded at mine heads or in old dumps. Limited quantities are consumed for pellet manufacturing, but the majority remains unutilised. This situation not only poses environmental challenges but also restricts scientific and sustainable mining, as fines cannot be removed from mining lease areas unless exported. Exporting these fines is a win-win, as it supports scientific mining, avoids mine closures, preserves employment, and brings in foreign exchange.