Mines minister Handique wants steel makers to adopt finex technology

Mines minister B K Handique wants the steel industry to first adopt finex technology that refines the iron ore fines before asking for a ban on exports of the raw material.

"If we ban exports, thousands of people will lose jobs,'' he said referring to the iron ore export ban asked fro by the steel industry, and added, ''Find a technology for it first. Then you talk about it." Handique told PTI news agency on Sunday.

He also said that the large quantity of iron ore dust is also creating a health problem for people living in and around the mining areas, "What we will do of the fines? You know it would be almost on the surface. If we do not export, there will be a lot of pollution," he added.

With the global iron ore price rising rapidly, since the middle of last year and Indian steel makers crying hoarse to stop the runaway exports of ore to China, the government had increased the export duty on iron ore lumps by 5 percentage points to 10 per cent and on iron ore fines to 5 per cent from nil in December 2009. (See: India raises export duty on iron ore by 5 per cent) 

The production of iron ore in the country during 2008-09 was 227.64 million tonnes, while the domestic consumption of was estimated to be only 87 million tonnes, with exports amounting to 105.86 million tonnes.

The steel ministry had asked the government in January to again raise the export duty so that steel makers in the country could buy the ore locally instead of having to spend huge foreign exchange in importing iron ore to secure steady supplies.