News and Events

Exports of iron ore may be canalized – Report

It is reported that to monitor iron ore exports, a cause of illegal mining, the Indian government plans to canalise exports of the mineral.

The report quoted a senior official as saying that “The proposal will be sent to the Union Cabinet once inter ministerial discussions are completed. The ministry of mines is in discussion with the ministry of commerce and industry.”

He told Business Standard; “The basic idea is to have a single agency accountable for the illegalities that arise in the iron ore trade.”

The official said “The setting up of a canalising agency would act as a short-term solution until we put in place mechanisms to improve poor last-mile governance in mineral-rich states, the basic reason for illegal mining.”

The report added that the government is considering the recommendation on a ban on exports in the context of the export import policy.

Currently, iron ore exporting companies enter independent bilateral deals with foreign entities. If the canalising proposal comes through, big exporters such as Sesa Goa, Fomento Resources, MSPL Ltd and VM Salgaokar & Bro would be forced to execute these contracts through a government owned company such as MMTC, NMDC or State Trading Corporation.