India is likely to import one million tonnes of iron ore each month this fiscal year, despite its long-held status as the third-largest exporter, the head of an industry body said Thursday.
Domestic output has declined and prices have risen because of investigations into illegal mining, and also because of an increase in export tax to 30% from 20% about 18 months ago.
Halting production at the Karnataka mines could lead to the permanent closure this financial year of 60 to 70 makers of sponge iron, an intermediate product for making steel, the Federation of Indian Mineral Industries. said.
Factory units that are not near ports are not able to import as its too expensive.
Production at mines in the western state of Goa, and exports from mines in the eastern state of Orissa, have also been halted by similar court orders regarding illegal mining. Goa is India's largest exporting state for iron ore, accounting for about half.
The consequent output decline has prompted steelmakers lacking their own mines to increase imports.
India was once the primary source of spot-market iron ore for China, the world's largest consumer, its share started to decline 18 months ago after the Supreme Court halted production at mines in the southern state of Karnataka because of illegal mining.
The court recently lifted the ban on the majority of the mines, but imposed conditions for resuming operations that could take up to a year for most to comply with. It has also prohibited exports indefinitely. Reported by Proactive Investors 13 hours ago.
Domestic output has declined and prices have risen because of investigations into illegal mining, and also because of an increase in export tax to 30% from 20% about 18 months ago.
Halting production at the Karnataka mines could lead to the permanent closure this financial year of 60 to 70 makers of sponge iron, an intermediate product for making steel, the Federation of Indian Mineral Industries. said.
Factory units that are not near ports are not able to import as its too expensive.
Production at mines in the western state of Goa, and exports from mines in the eastern state of Orissa, have also been halted by similar court orders regarding illegal mining. Goa is India's largest exporting state for iron ore, accounting for about half.
The consequent output decline has prompted steelmakers lacking their own mines to increase imports.
India was once the primary source of spot-market iron ore for China, the world's largest consumer, its share started to decline 18 months ago after the Supreme Court halted production at mines in the southern state of Karnataka because of illegal mining.
The court recently lifted the ban on the majority of the mines, but imposed conditions for resuming operations that could take up to a year for most to comply with. It has also prohibited exports indefinitely. Reported by Proactive Investors 13 hours ago.