A decline in iron ore exports from India following a crack down by the government to check illegal mining has prompted China to begin exploring alternate markets to source its requirement of the mineral, a senior official of China Minmetals Corporation said today.
"India's iron ore supply is not very stable. Who can tell what is the policy about the iron ore? Chinese companies are looking for alternatives," Shi Ming Li, the Assistant Chief Representative of China Minmetals Corporation, told PTI today.
Last fiscal, China imported 15% of its iron ore requirement from India, especially Goa, as the produce is priced less compared to imports from other countries.
"India should have a stable and transparent mining policy, which is important for miners," the representative of the state-controlled corporation said.
He was in Goa to participate in an International Iron Ore and Steel-Making Raw Materials Conference. He said China already has alternatives that can be explored to face the deficit.
"It's a turning point for the international iron ore market," Ming Li claimed, adding that Brazil and Australia have a lot of capacities that can be looked up to meet the requirement.
China, which has been sourcing iron ore from Australia, Brazil and South America, besides India, is also looking at countries like South Africa, Iran, Ukraine, Congo, South Africa, Zimbabwe, Indonesia and Venezuela for steady supply of iron ore.
Ming Li said China hopes that exports from India won't be banned. "But it is for the Indian government to decide their own policies," he said.
China does not have long-term agreements for iron ore with India, which usually opts for spot pricing.
Indian traders, too, conceded that the future of Indian iron ore in the Chinese market is uncertain.
"Indian iron ore exports' future is uncertain. We don't know what will happen tomorrow," said Prem Kumar, the spokesperson of Pisces Exim Pvt Ltd, a leading Indian iron ore exporter.
