One of the world's top iron ore exporter India announced on Dec 30 that it had raised its export duty on iron ore to 30% from 20%, aiming at reducing iron ore exports and helping the domestic steel industry get enough supply of iron ore.|
However, the increase in export duty might make mining companies' situations worse. In March 2011, iron ore export duty both on lump ore and fine ore was already raised to 20%. Also, there are export bans of iron ore in some states, India, which is strangling mining companies.
India's iron ore production volume in 2010-11 was 281.1 million tonnes (down 4.8% from the previous year) and the export volume was 97.7 million tonnes (down 16.8%, same). Both were on the decrease. With environmental protection policy and strengthened control over illegal mining as well, many involved parties in Japan are worried that India's iron ore export might not work out anymore in the future.