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Odisha CM reiterates demand for ban on iron ore exports

Odisha has again sought an immediate ban on exports of the mineral ore, saying such a move would bring down prices of ore and help regulate mining activities.

The state chief minister Mr Naveen Patnaik has reiterated his demand for ban on iron ore exports, seeking intervention of Prime Minister Dr Manmohan Singh on the matter.

Mr Patnaik said in his letter to the PM that “The boom in iron ore prices in the last decade has created perverse incentives for mining activities to be carried out in an unregulated manner. A ban on the export of iron ore should be immediately imposed. This will not only bring down domestic prices of iron ore but also encourage local industries to invest in technologies to utilize the iron ore prices presently being exported, besides ensuring that mining activities are regulated and sustainable.”

He said “The ban on iron ore exports is necessary as the demand for steel and its production in the country are both expected to grow at an annual rate of 10% or more on an average in the coming years.”

Mr Patnaik had earlier urged the Prime Minister to announce a ban on iron ore exports and had also raised this demand at the meeting of the National Development Council held on October 22.