|
Mumbai: India, the world's second-biggest iron ore supplier to China, must restrict overseas sales of the main steelmaking ingredient to ensure supply for domestic mills, Steel Minister Ram Vilas Paswan said.
India, the world's fastest-growing major economy after China, aims to more than double capacity to 124 million tonnes by 2012 and must curb ore exports to meet the target, Paswan said in a reply in parliament on Friday, reiterating comments made last year.
ArcelorMittal and Posco are seeking 30-year iron ore mining leases from the government for their ventures in the South Asian nation. Indian steelmakers, including Tata Steel, have asked the government to ban exports of the material, the price of which has surged to a record for a sixth year.
"It would be prudent for India to keep the high-grade ore for domestic use,'' said A.S. Firoz, an independent analyst and former chief economist at India's steel ministry.
Asia's four largest steel producers agreed last month to pay Brazil's Vale, the world's biggest iron-ore exporter, at least 65 per cent more for its ore.
Rio Tinto Group, the world's second-largest ore supplier, is holding out for more than a 71 per cent gain and a premium for its freight advantage, Sam Walsh, head of Rio's iron ore business, has said.
Chinese business
India produced 160 million metric tonnes of iron ore in the year ended March 31, of which two-thirds was sold to China, the world's biggest steel consumer, according to the Federation of Indian Mineral Industries.
The nation holds 25 billion tonnes of ore reserves, Paswan said. About four per cent of the deposit is high-quality ore.
|
