Press Information Bureau

Government of India

Ministry of Commerce & Industry

19-March-2012 17:00 IST

Export of Iron Ore through MMTC

Under the extant Foreign Trade Policy, export of iron ore with Fe content 64% and above (except iron ore of Goa & Redi origin) is under the State Trading Regime through MMTC Limited. However, the feasibility of nodal agency operation, as an interim measure, to cover exports of most grades of iron-ore as an accounting procedure is under examination, to enforce legitimacy and tighter regulation of iron-ore exports and compliance with mining regulations. Procedures for end-to-end monitoring of mineral movement (from mining stage to end-use/export) and mandatory registration of and reporting by all stakeholders would help to establish the traceability of the ore thereby ensuring that it is sourced through legal mining operations.

To ensure domestic availability of iron ore, Government has raised the ad-valorem export duty on iron ore lumps and fines to 30% and imposed differential railway freight on iron ore meant for export.

This information was given by Minister of State for Commerce and Industry, Shri Jyotiraditya M. Scindia in a written reply to a question raised in Lok Sabha today.

DS/GK

State trading regime expands controls; nodal agency, traceability and export duty measures to regulate iron ore exports. Export of iron ore with high iron content is under a State Trading Regime through MMTC, while the Government is examining a nodal agency interim model to broaden accounting and control over exports. The policy emphasizes end-to-end monitoring and mandatory stakeholder registration and reporting to establish traceability from mining to export. Concurrent fiscal and logistical measures-an increased ad-valorem export duty on lumps and fines and differential railway freight on exported ore-aim to ensure domestic availability and tighten export regulation.