 "Mining ban, taxes to weigh down exports")
Exports will probably fall by about 50 percent in the 12 months through March from 18 million metric tons a year earlier, said Hukam Chand Daga, president of the Federation of Indian Mineral Industries. A tax of 30 percent and waning availability have made exports almost unprofitable, he said.
Shipments to countries, including China, India's biggest buyer, plunged after mining and transport in the western state of Goa, the top producer, was stalled by the nation's Supreme Court in October last year pending probe into violations of norms.
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There was no case to lower taxes on exports, Finance Minister Palaniappan Chidambaram said on Sept. 27, two months after Prime Minister Manmohan Singh said the government was trying to remove constraints in shipments.
"High taxes and railway freight coupled with court-ordered bans on mining have cut output and made us unviable in the international market," said Daga, who is also an adviser to Essel Mining & Industries Ltd., an ore producer owned billionaire Kumar Mangalam Birla.
"With tax cuts, the shipments could have crossed last year's figurem," he said.
India is considering reducing taxes on some exports to boost shipments and help reverse a decline in the local currency, two government officials with direct knowledge of the matter said last month.
Taxes on exports of low-grade fines may be cut to 20 percent from 30 percent, they said.The rupee has rebounded 9.8 percent from a record low of 68.845 a dollar touched Aug. 28 after the U.S. Federal Reserve said Sept. 18 it will continue $85 billion a month
K'taka iron ore mines reopening delayed by lack of approvals (Adds PTI)
Despite the Supreme Court's direction allowing reopening of iron ore mines in Karnataka six months ago, most mines are still shut due to the delays in grant of related approvals, industry sources said.
"It is taking time. There is delay in receiving approvals for renewal of mining operations." a miner based in Karnataka said on Mondayon condition of anonymity.
"We feel it will take another year for all the mines to restart," he said. The Supreme Court, in April, allowed 117 mines in Karnataka to reopen.
But so far, only a dozen have resumed operations.
"The state is cautious in giving approvals," another miner from Karnataka said.
According to sources, the arrest of a senior IAS official earlier this month in a corruption case related to illegal mining in Bellary region made the officials wary.
Steel firms such as JSW Steel and Kalyani Steel are running below capacity due to shortage of ore in the state.
Several sponge iron units have shut the shop in the last two years as they could not afford to buy ore from state agencies through e-auction.
Karnataka produced around 35-40 million tonnes (MT) iron ore per annum before the mining halted in 2011. Steel units in the state require around 25 MT to 30 MT ore to run at the full capacity.
Secretary general of Federation of Mineral Industries R K Sharma said the reopening would take some time as the mines coming for renewal would require forest department's clearances.