The Indian government is working toward the imposition of a 30% export tax on low-grade iron ore by October 2025, according to government sources.
The move aims to promote domestic value addition and secure supplies for local steel mills. At present, low-grade fines and lumps face no export duty, while high-grade ores already carry a 30% levy.
Steelmakers have welcomed the proposal, but miners represented by the Federation of Indian Mineral Industries (FIMI) plan to oppose it, arguing that India has a surplus of 14 million mt of low-grade ore, potentially rising to 35 million mt in 2026. They warn that a blanket duty could lead to stockpiles, lower royalty revenues, and trade disputes.
Industry groups suggest a rules-based, flexible system with exemptions for certain grades and periodic reviews.
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