Govt approves export of iron ore under LTA to Japan and South Korea

The foreign exchange expected to be earned is around US $311.05 million per annum at current sale prices against export of iron ore under LTAs.

Government has approved exports under the Long Term Agreements (LTAs) to Japan and South Korea through MMTC for supplying 16.5 million tonne (MT) of high grade iron ore.

The foreign exchange expected to be earned is around US $311.05 million per annum at current sale prices against export of iron ore under LTAs.

At present production of iron ore in the country is sufficient to meet the demand of domestic steel industry however there may be regional shortages in some states like Karnataka due to legal and regulatory issues.

Export duty at the rate of 30% ad valorem on all varieties of iron ore with effect from 30.12.2011 and 5% ad valorem on iron ore pellets with effect from 27.1.2014 is imposed. Further, export duty at the rate of 10% has been levied on iron ore containing Fe less than 58% with effect from 30.4.2015.

This Information was provided by the Minister of State for ministry of Steel and Mines, Vishnu Deo Sai, in reply to a question in Lok Sabha today.