NEW DELHI: Around 12 million tonnes of low grade iron ore has been stuck at Indian ports for months as hefty export taxes and plunging prices make higher quality ore more appealing to buyers, said industry and government officials.
Indian steel producers, many of which have been buying iron ore overseas amid short supply at home, are unable to use the low-grade material, which is typically shipped to top market China.
The stranded ore is bad news for Indian miners and exporters who are smarting from a 30-percent duty on iron ore exports, and comes as a handful of large international miners are bent on maximising output to push out smaller rivals.
For many of us, it’s a case of blocked capital. We are on the brink of sinking,” said P.K. Chaki, honorary secretary of the Iron Ore Exporters’ Association, which groups companies based in the states of Odisha and West Bengal.
India used to be the world’s No. 3 iron ore supplier until court-imposed mining and export curbs from 2010 aimed against illegal mining in key states constricted supply, bloating imports to a record 8 million tonnes last year, according to commodities consultancy OreTeam.
