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Call for ban on iron ore exports

Call for ban on iron ore exports
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Visakhapatnam: The trade union leaders and representatives of various industries have suggested the government to stop the export of iron ore to...

Visakhapatnam: The trade union leaders and representatives of various industries have suggested the government to stop the export of iron ore to improve domestic supply of raw material to the steel plants in the country. The Rashtriya Ispat Nigam Limited is the only public sector company not to have captive mines which was resulting in the cost escalation.A This opinion was expressed at the recently held CII Vizag chapter annual body meeting in the city. Expressing concern over the depleting reserves, former Chairman-cum-Managing Director of RINL Y Siva Sagar Rao said that though India had 13 billion tonne iron ore reserves, the steel factories in the country have been facing severe shortage. The country also claims to be the fourth largest coal-rich with 17 billion tonne reserves. In bauxite reserves also, the country stands fourth in the world with a reserve of 2.3 billion. While the country is exporting 55 per cent of the ore, Mr Rao said the steel companies have been investing 30 to 40 per cent of their production cost on sourcing the raw material.A The trade union leaders of RINL also have been demanding a blanket ban on iron ore exports.A They said one ton of iron ore in the international market was fetching Rs. 7,000 but the exporters were projecting a distorted figure of Rs. 1,000 per ton. Stating that the exporters were making huge profits, they said unless the government imposed a total ban on exports the steel industry would further suffer as the capital cost would go up.
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