Export duty cut to help reduce losses
The iron ore industry has welcomed the government’s decision to cut export duty on raw material, saying the move would help ailing mining firms reduce losses.
The government yesterday, as part of economic stimulus package, announced eliminating export duty on iron ore fines while reducing the levy on iron ore lumps shipments to 5% from 15% earlier.
Most companies expect the cut in export duty to see an increase in shipments and the overall industry to cut losses.
The government, earlier this year, had imposed a 15% ad-valorem export duty on the two iron ore categories to increase their availability and check prices in the domestic market. Mining companies export 84% of the total iron ore fines produce.