India May Cut Export Tax on Iron Ore from Goa

Reuters reported that India is looking at getting rid of the export tax on low-quality iron ore produced in Goa. The news is not great for the industry as it may put further pressure on prices for the metal.

As quoted in the market news:

The idea was welcomed by top private minerSesa Sterlite Ltd, though somesteel companies were critical.

Goa is expected to resume iron ore production by April after action againstillegal mining kept the industry shut for over two years. The state has about eight-million tonnes of ore waiting at ports that has not got a buyer due to 30% duty.

Most Indian steel companies lack the technology to use Goa’s iron ore, which has an iron content of less than 58 percent. Chinese companies buy that ore but multi-year-low prices have made higher quality ore more appealing.

Click here to read the full Reuters report.