<p>With the iron ore prices soaring in the international market ($127 per tonne for 63% fe ore), the demand for lifting ban on exports of ore from Karnataka has once again gained momentum.</p>.<p>Recently, the Supreme Court-appointed Central Empowered Committee (CEC) has recommended for withdrawal of ban on iron ore left unsold during two consecutive e-auctions in the state. The miners body - the Federation of Indian Mineral Industries (FIMI) has urged the chief secretary of Karnataka to place the necessary facts before the Supreme Court, in order to rectify the gross imbalance that has arisen due to the prohibition on exports/ restriction on the sale of iron ore from Karnataka as directed by the apex court.</p>.<p>An estimated 8 million tonnes of low-grade iron ore, valued at Rs 4,200 crore as per the prevailing rate (at $70 per tonne) in the international market, is lying unsold in Karnataka. If the Supreme Court allows for exports, the state government stands to gain Rs 1,200 crore by way of royalty, and taxes.</p>.<p>In a recommendation to the Apex Court, the CEC said, "The method of sale and price fixation of iron ore are best left to be determined by the market forces as any restriction on sale including export will only benefit one party at the cost of the other. Artificial suppression of the iron ore prices will also adversely impact the revenues of the state government."</p>.<p>At present, there is no restriction on the export of iron ore from all states other than Karnataka.</p>.<p>In its order dated April 13, 2012 and judgement dated April 18, 2013, the apex court had stated that the export outside the country should be permissible only in respect of the material which the steel plants and associated industries are not willing to purchase on or above the average price realised by the Monitoring Committee for the corresponding grades of fines/ lumps.</p>.<p>"Demand and supply should be left to the market forces. In Karnataka, there is no freedom for the sale of iron ore. So, for the betterment of people- state exchequer, miners and users of iron ore, it is best that the freedom of sale of iron ore, as it exists in other states of the country, is also given to Karnataka." Sauvick Mazumdar, Member, FIMI and CEO, Sesa Goa Iron Ore, a unit of Vedanta told <span class="italic"><em>DH</em></span>.</p>.<p>Currently, 37 leases in A, B and C categories are allowed to produce a maximum of 32.98 million metric tons. The total production of ore for 2020-21 is pegged at 35.72 MMT as some more leases are likely to start production in the current year.</p>
<p>With the iron ore prices soaring in the international market ($127 per tonne for 63% fe ore), the demand for lifting ban on exports of ore from Karnataka has once again gained momentum.</p>.<p>Recently, the Supreme Court-appointed Central Empowered Committee (CEC) has recommended for withdrawal of ban on iron ore left unsold during two consecutive e-auctions in the state. The miners body - the Federation of Indian Mineral Industries (FIMI) has urged the chief secretary of Karnataka to place the necessary facts before the Supreme Court, in order to rectify the gross imbalance that has arisen due to the prohibition on exports/ restriction on the sale of iron ore from Karnataka as directed by the apex court.</p>.<p>An estimated 8 million tonnes of low-grade iron ore, valued at Rs 4,200 crore as per the prevailing rate (at $70 per tonne) in the international market, is lying unsold in Karnataka. If the Supreme Court allows for exports, the state government stands to gain Rs 1,200 crore by way of royalty, and taxes.</p>.<p>In a recommendation to the Apex Court, the CEC said, "The method of sale and price fixation of iron ore are best left to be determined by the market forces as any restriction on sale including export will only benefit one party at the cost of the other. Artificial suppression of the iron ore prices will also adversely impact the revenues of the state government."</p>.<p>At present, there is no restriction on the export of iron ore from all states other than Karnataka.</p>.<p>In its order dated April 13, 2012 and judgement dated April 18, 2013, the apex court had stated that the export outside the country should be permissible only in respect of the material which the steel plants and associated industries are not willing to purchase on or above the average price realised by the Monitoring Committee for the corresponding grades of fines/ lumps.</p>.<p>"Demand and supply should be left to the market forces. In Karnataka, there is no freedom for the sale of iron ore. So, for the betterment of people- state exchequer, miners and users of iron ore, it is best that the freedom of sale of iron ore, as it exists in other states of the country, is also given to Karnataka." Sauvick Mazumdar, Member, FIMI and CEO, Sesa Goa Iron Ore, a unit of Vedanta told <span class="italic"><em>DH</em></span>.</p>.<p>Currently, 37 leases in A, B and C categories are allowed to produce a maximum of 32.98 million metric tons. The total production of ore for 2020-21 is pegged at 35.72 MMT as some more leases are likely to start production in the current year.</p>
