FIMI warns against export duty on iron ore

The Federation of Indian Mineral Industries (FIMI) has urged the government not to impose any export duty on low-grade iron ore, warning that such a move could lead to resource wastage, hinder mining operations, reduce employment, and cause environmental damage due to stockpiling of unusable fines.

In a letter addressed to Commerce and Industry Minister Piyush Goyal, FIMI emphasized that domestic steel industries primarily consume high-grade iron ore (+62% Fe), while low-grade fines have minimal demand within India. Most of the fines generated during mining remain stranded at mine heads or in old dumps, with only limited quantities being used for pellet production.

FIMI stated that exporting low-grade iron ore is crucial for scientific mining, preventing mine closures, preserving employment, and generating foreign exchange. The federation also highlighted that India has abundant iron ore resources, and production has been rising steadily to meet domestic steel demand and export surplus.

Citing government data, FIMI noted that crude steel production in India increased from 103.54 million tonnes in 2020-21 to 152.18 million tonnes in 2024-25, with a projected surplus of 35 million tonnes in 2025-26. The organization also pointed out that in mining operations, only 25-30% of output is in the form of usable lumps, while 70-75% consists of fines below the 58% Fe threshold, which are unsuitable for MSMEs or domestic steel production.

The inability to remove low-grade fines also limits the production of higher-grade ore, affecting downstream industry operations. FIMI stressed that the MMDR Amendment Act, 2025, will enable new mineral blocks to become operational, further enhancing supply.

Exporting low-grade iron ore, FIMI argued, is necessary to ensure efficient utilization of resources, maintain sustainable mining practices, and support the growth of India’s mining and steel sectors.