National Mineral Policy 2006 - Department of Mines

measure to provide a level playing field. These existing steel companies would haveto enter into tie-ups with experienced mining companies so that they become eligiblein terms of Section 11(3)(a) of the MMDR Act. Due regard should be given to thesize of the steel making capacity when considering allocation of a specific ore body.[7.47]• Scientific and vigorous prospecting in the country should be encouraged. LAPLs andPLs for magnetite may be freely given to both stand alone and captive miners,whether Indian or foreign. LAPLs for haematite may be given only after strictlyensuring that GSI or another state agency has not already done the requisiteexploration. [7.47]• Captive iron ore mines allotted to steel makers should use the ore from these minesfor their own steel and should not sell the same either in India or abroad. [7.47]RESTRICTIONS ON THE EXPORT OF IRON ORE• The Committee finds it anomalous that exports are regulated through a dualmechanism of canalisation as well as export licensing. [7.61]• The export regime for iron ore of higher grade does not make any distinction betweenfines and lumps although, as noted earlier, fines are particularly in surplus in thecountry. The rationale for the 64 per cent cut-off of Fe content is also not clear, as thecut-off in IBM classification is 65 per cent. [7.62]• In light of the assessment regarding availability of iron ore resources in relation tocurrent domestic production, and the appraisal of the impact of export controls on thehealth of the mining industry and its attractiveness for investment, the Committee hasconcluded that there is no need to impose any quantitative restrictions on exports butthat the position should be revisited after 10 years. However, by way of abundantprecaution, the Committee recommends that an export duty may be levied on exportsof iron ore in lump form with Fe content above 65 per cent. The system of licensingand canalisation currently in operation should be discontinued. Also captive minersshould not be allowed to export either fines or lumps. They should sinter the formerand use the latter in their own blast furnaces. [7.63]218