30-Jul-2013
NEW DELHI—India, a leading iron-ore exporter just a few years ago, will see its imports of the key raw material jump as much as eightfold during the current financial year due to domestic mining restrictions, the Federation of Indian Mineral Industries said Tuesday.
This would mark a dramatic reversal for India, which was the world's third-largest iron-ore exporter until two years ago. But domestic output has plummeted by around half since then after environmental concerns prompted legal restrictions on mining in certain areas.
India's imports of iron ore, a key ingredient in steel, are likely to reach 20 million-24 million metric tons this year, up from around 3 million tons during the year that ended March 31, FIMI said.
This is likely to benefit Australia and Brazil, the world's two largest iron-ore exporters, who have been hit by lower prices, slowing global demand and spiraling costs, FIMI President H.C. Daga said.
India's Supreme Court ordered a halt to production at mines in the southern state of Karnataka in early 2012 due to concerns about the environmental impact of illegal mining. The court recently lifted the ban for most of the mines but imposed conditions on the resumption of operations that could take mines up to a year to meet.
Production at iron-ore mines in western Goa state and exports from eastern Odisha have also been halted by similar court ordered-probes into illegal mining.
India's iron-ore exports are likely to fall to around 10 million tons this year from 18.37 million tons in the previous financial year, FIMI Secretary-General R.K Sharma said.
He said iron-ore production is likely to fall to around a 100 million tons from 115 million tons in 2012-13.
India's iron-ore exports are likely to fall to around 10 million tons this year from 18.37 million tons in the previous financial year.
Mr. Daga said the decline in exports resulted in a loss of potential earnings of around $17.5 billion since 2010-11.
Despite a small bounce in recent weeks, international iron-ore prices remain well below their 2011 peak of $191.90 and down by around a fifth from their 2013 high.
Source:-online.wsj.com
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