18 May 2007
India: Curbs sought on chrome ore exports
Anticipating a shortage of chrome ore, a crucial ingredient in stainless steel production, in the coming years, the mining industry wants the Union government to re-examine its export policy.
India is the third largest exporter of chrome ore after South Africa and Kazhakstan, though the reserves constitute only 0.84 per cent of worldwide reserves.
Recently, the government imposed a duty of Rs 2,000 per tonne on exports of all grades of chrome ore to curb overseas sales. The price of Indian chrome ore in the international market ranges between Rs 6,000-10,000 per tonne, depending on the grade.
“However, all the chrome ore mining firms and exporters have absorbed the tax since the price of chrome ore is high. There will be a huge demand-supply gap in the coming years if the exports of chrome ore are not curbed. We have urged the government to allow exports of chrome ore concentrates (produced through beneficiation of low grade chrome ore) and conserve other grades of chrome ore,” S B Chauhan, advisor to the Federation of Indian Mineral Industries (FIMI), told Business Standard.
China is the principal market for Indian chrome ore. Nearly one-third of the demand for chrome ore from China is met by India. Last year, India exported 1.34 million tonnes (accounting for 31 per cent of imports) of chrome ore to China. Chrome ore from South Africa and Turkey accounted for 18 per cent and 17 per cent of the Chinese imports.
The demand for Indian chrome ore is likely to go up this year since China intends to increase its stainless steel output by 37 per cent to 7.35 million tonnes this year.
The proven chrome ore reserves of all grades in India is around 66 million tonnes, with Orissa accounting for the bulk followed by Karnataka. The recoverable reserves of metallurgical grade chrome ore are around 50 million tonnes.
“We anticipate fast depletion of chrome ore at the open cast level in the coming years since Indian companies do not have the technology to undertake underground mining. There will be hardly any chrome ore of metallurgical grade available in the country if exports continue to remain at the present level,” he pointed out.
Besides, many public sector undertakings (PSUs) have control over chromite bearing areas in the country. “These areas are lying idle without witnessing any exploration and development. Considering the alarming status of metallurgical grade chromite resources in the country, the idle chromite-bearing areas should be de-reserved,” Chauhan said.
India: Curbs sought on chrome ore exports
Anticipating a shortage of chrome ore, a crucial ingredient in stainless steel production, in the coming years, the mining industry wants the Union government to re-examine its export policy.
India is the third largest exporter of chrome ore after South Africa and Kazhakstan, though the reserves constitute only 0.84 per cent of worldwide reserves.
Recently, the government imposed a duty of Rs 2,000 per tonne on exports of all grades of chrome ore to curb overseas sales. The price of Indian chrome ore in the international market ranges between Rs 6,000-10,000 per tonne, depending on the grade.
“However, all the chrome ore mining firms and exporters have absorbed the tax since the price of chrome ore is high. There will be a huge demand-supply gap in the coming years if the exports of chrome ore are not curbed. We have urged the government to allow exports of chrome ore concentrates (produced through beneficiation of low grade chrome ore) and conserve other grades of chrome ore,” S B Chauhan, advisor to the Federation of Indian Mineral Industries (FIMI), told Business Standard.
China is the principal market for Indian chrome ore. Nearly one-third of the demand for chrome ore from China is met by India. Last year, India exported 1.34 million tonnes (accounting for 31 per cent of imports) of chrome ore to China. Chrome ore from South Africa and Turkey accounted for 18 per cent and 17 per cent of the Chinese imports.
The demand for Indian chrome ore is likely to go up this year since China intends to increase its stainless steel output by 37 per cent to 7.35 million tonnes this year.
The proven chrome ore reserves of all grades in India is around 66 million tonnes, with Orissa accounting for the bulk followed by Karnataka. The recoverable reserves of metallurgical grade chrome ore are around 50 million tonnes.
“We anticipate fast depletion of chrome ore at the open cast level in the coming years since Indian companies do not have the technology to undertake underground mining. There will be hardly any chrome ore of metallurgical grade available in the country if exports continue to remain at the present level,” he pointed out.
Besides, many public sector undertakings (PSUs) have control over chromite bearing areas in the country. “These areas are lying idle without witnessing any exploration and development. Considering the alarming status of metallurgical grade chromite resources in the country, the idle chromite-bearing areas should be de-reserved,” Chauhan said.