Amid a demand from steel industry for banning iron ore exports and reports that Law Ministry is for conservation of the mineral, the Mines Ministry has said that the industry should first develop the technology for value addition.
Mines Minister B K Handique told PTI, "Before you (steel producers) say that exports should be banned (and) raise (duty), you find a technology for it first. Then you talk about it."
The steel industry has been demanding a ban on iron ore exports apprehending that rampant outbound shipment may deplete the estimated 25 billion tonne reserves in about three decades.
The Ministry officials dismissed reports that there were any differences with Law Ministry on the issue and the opinion obtained from the latter related to only certain conservation aspects and did not relate to exports.
Some reports interpreted the Law Ministry's opinion as a suggestion for banning the exports of iron ore from the country.
In its opinion on draft Mines bill sent to it by the Mines Ministry, Law Ministry had stressed on the need for conservation and judicious exploitation of natural resources while referring to a latest ruling by the Supreme Court that the Centre had sovereign authority over the natural resources.
The judgement was delivered in the dispute between Mukesh Ambani and his younger brother Anil, whose group firm wanted cheaper natural gas from RIL led by the other.
The Mines Ministry official elaborated that the suggestion about conservation was a general one and did not specifically relate to iron ore.
"We have incorporated conservation aspect in general with regard to minerals in the new legislation, but we are not in favour of restrictions on iron ore exports. Also, we do not find any relevance of the Supreme Court judgement with regard to onshore minerals. For offshore minerals we have a separate Act," a top Mines Ministry official said.
"We have done fresh amendments in the proposed legislation on other suggestions of the Ministry like giving additional powers to the Centre to curb illegal mining but in this case we do not see any logic to make amends in the draft Act based on apex Court judgement," the official said.
As far as conservation of minerals is concerned, the Mines Ministry's draft has a general conservation clause but is of the view that exports of minerals is regulated by the policies of the Ministry of Commerce and Industry.
