India’s independent bauxite miners have urged the government to exempt the aluminium raw material from export duty, due to the lack of its demand from domestic aluminium producers.
Though the export duty on bauxite was reduced by five per cent, to 15 per cent, in the earlier Union Budget, the levy makes Indian exporters uncompetitive in global markets, they say. In contrast, the government had exempted low grade iron and chromium ore from export duty, from a uniform high of 30 per cent
“The bauxite export industry is already battling headwinds from the meltdown in global commodity markets. Therefore, customs duty on export of bauxite ore should be reduced to nil,” said C K Joshi, chairman of the Gujmin Industry Association, representative body of mineral excavators in Gujarat.
India has three billion tonnes of bauxite reserves. With around two million tonnes (mt) of annual aluminium production and remote chances of further large addition in production due to subdued price trends and the huge cost involved, the known bauxite reserves is estimated to last for at least 300 years. At least 80 per cent of these are in Odisha and Andhra, which is why nearly all the integrated alumina and aluminium plants are in the east and central regions of the country. The west coast is peppered with non-contiguous deposits of bauxite, none of which have the quality or critical mass to support an alumina refinery or integrated smelter.
India is estimated to have exported around seven mt of bauxite, largely to China, in calendar year 2015. However, the export duty is a problem. Indian bauxite comprised only 14 per cent of the Chinese import requirement and, says the trade, is on a weaker wicket as compared to competitor countries, mainly on account of a disproportionate export duty and dwindling quality.
“Because of export duty mismatch, the livelihood of around 50,000 workers employed in this business is at stake. To protect the interest of these labourers, the government must abolish export duty on bauxite,” said a senior official at a mining company.
Though the export duty on bauxite was reduced by five per cent, to 15 per cent, in the earlier Union Budget, the levy makes Indian exporters uncompetitive in global markets, they say. In contrast, the government had exempted low grade iron and chromium ore from export duty, from a uniform high of 30 per cent
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“The bauxite export industry is already battling headwinds from the meltdown in global commodity markets. Therefore, customs duty on export of bauxite ore should be reduced to nil,” said C K Joshi, chairman of the Gujmin Industry Association, representative body of mineral excavators in Gujarat.
India has three billion tonnes of bauxite reserves. With around two million tonnes (mt) of annual aluminium production and remote chances of further large addition in production due to subdued price trends and the huge cost involved, the known bauxite reserves is estimated to last for at least 300 years. At least 80 per cent of these are in Odisha and Andhra, which is why nearly all the integrated alumina and aluminium plants are in the east and central regions of the country. The west coast is peppered with non-contiguous deposits of bauxite, none of which have the quality or critical mass to support an alumina refinery or integrated smelter.
India is estimated to have exported around seven mt of bauxite, largely to China, in calendar year 2015. However, the export duty is a problem. Indian bauxite comprised only 14 per cent of the Chinese import requirement and, says the trade, is on a weaker wicket as compared to competitor countries, mainly on account of a disproportionate export duty and dwindling quality.
“Because of export duty mismatch, the livelihood of around 50,000 workers employed in this business is at stake. To protect the interest of these labourers, the government must abolish export duty on bauxite,” said a senior official at a mining company.