Karnataka ordered to resume iron ore exports from 20 April
India’s Supreme Court ordered the Karnataka state government today to permit iron ore exports from the state to resume from 20 April, nearly nine months after the ban was imposed in late July.
During court proceedings on 4 and 5 April, the state government sought additional time of four weeks to “fully” implement various regulatory processes to curb illegal mining. In response, the court directed the government to start issuing ore export permits starting 20 April, local sources tell Steel Business Briefing.
More details of the court’s orders are expected soon. It is presently unclear, however, whether ore transport from mines to ports would be allowed to resume before 20 April.
Karnataka’s ban took effect from 26 July when the state government called a temporary suspension of ore exports from state-controlled ports. From 28 July, the state stopped issuing transport permits to prevent Karnataka-origin ore from being exported through major ports or through other states.
The ban largely contributed to the 18% year-on-year decline in India’s iron ore export volumes, which stood at 85.43m tonnes during April 2010-February 2011, compared with 104.16m t exported during April 2009-February 2010, according to the Federation of Indian Mineral Industries. Karnataka produced 40m t/y, most of which was exported.
Sources believe that, with Karnataka-origin ore now set to hit the export market, spot prices would come under pressure. “Karnataka has only two more months to go before India’s west coast ports close for the monsoons. So exporters will rush to take advantage now,” a New Delhi-based source tells SBB. Average market levels for Indian 63.5%/63% Fe fines currently stand at $177-180/tonne cfr China.
India’s Supreme Court ordered the Karnataka state government today to permit iron ore exports from the state to resume from 20 April, nearly nine months after the ban was imposed in late July.
During court proceedings on 4 and 5 April, the state government sought additional time of four weeks to “fully” implement various regulatory processes to curb illegal mining. In response, the court directed the government to start issuing ore export permits starting 20 April, local sources tell Steel Business Briefing.
More details of the court’s orders are expected soon. It is presently unclear, however, whether ore transport from mines to ports would be allowed to resume before 20 April.
Karnataka’s ban took effect from 26 July when the state government called a temporary suspension of ore exports from state-controlled ports. From 28 July, the state stopped issuing transport permits to prevent Karnataka-origin ore from being exported through major ports or through other states.
The ban largely contributed to the 18% year-on-year decline in India’s iron ore export volumes, which stood at 85.43m tonnes during April 2010-February 2011, compared with 104.16m t exported during April 2009-February 2010, according to the Federation of Indian Mineral Industries. Karnataka produced 40m t/y, most of which was exported.
Sources believe that, with Karnataka-origin ore now set to hit the export market, spot prices would come under pressure. “Karnataka has only two more months to go before India’s west coast ports close for the monsoons. So exporters will rush to take advantage now,” a New Delhi-based source tells SBB. Average market levels for Indian 63.5%/63% Fe fines currently stand at $177-180/tonne cfr China.
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