The acquisition of iron mines in Madagascar by Chinese companies is unlikely to affect Indian ore exports to China, as the bulk of Indian exports consist of high quality ore, which is only available in Australia and Brazil, besides India.
India, along with Brazil and Australia, have the high-grade quality iron ore needed for manufacturing high-end steel products and China only has to access it from these three countries, Deep Banerjee, Vice-President of the Essar group in China, told PTI here today.
He said he is not aware of any curbs being imposed by China on ore imports following the acquisition of some mines in Africa and does not see it as a threat to Indian ore exports, which form the bulk of India's exports to China.
China has to import quality ore from Australia, Brazil or India and any curbs would not be in China's own interest.
So India need not be concerned, Banerjee argued.
There were, however, differences over the pricing system and China may would like to import it at a cheaper rate. Ultimately, however, Beijing has to pay the internationally agreed prices dictated by demand and supply, he said.
It would also take a long while for China to get supplies from its newly acquired mines in Africa. It could take even a decade, as they have to create infrastructure to bring it all the way here, he said.
In the long run, Indian iron exports may go down because Indian infrastructure development is gathering pace and more companies may choose to sell the ore back home, where it is needed, the Essar official said.
China imported 627 million tonnes ore last year, of which India supplied around 100 million tonnes.
