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Indian steel manufacturers have been lobbying the Government
to stop the export of high-grade iron ore so as not to
lose the advantage to China. Whereas, the exporters
claim that the export of iron ore will not adversely
affect the Indian economy because of large deposits
and the lack of need for this amount of iron ore till
after 5 years when the new steel mills will be
required.
The National Minerals Development Corporation (NMDC) said
that based on the Government’s stated sustained
growth of 7.2% per annum, iron Ore production itself
is expected to grow 600% by 2030 from the current 143
mt to 862mt. While India has 24 bt of iron ore, 45% of
these deposits cannot be mined because of the
collateral damage to the environment from mining.
India produces 11% of the world’s iron ore. NMDC,
which produces 14% of the Indian iron ore, says it
wants to increases its production from the present 23
mt to 45 mt.
The decision by the Government is a step in the right
direction. While export of iron ore may become quick
income to exporters and earn foreign exchange, export
of steel will add value to the resource and will fetch
more revenue in the long run. What it can do is to
facilitate to hasten the creation of these new mills
by providing roads, power connections, and water.
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