Author: Paul Ploumis10 Oct 2014 Last updated at 05:21:56 GMT
NEW DELHI (Scrap Monster): He further added that, with the decrease in the global price of iron ore upon the imposition of 30 percent of export charges on the export of low grade iron ore from the mine in Goa, is making mining a non profitable business in India.
Tom Albanese, the Chief Executive of Vedanta, explained to Press Trust of India, that, the profit gained by the mining industry is being reversed in the company, as the mining sector in Goa has been shut down for a long period of time now, and in addition to that, the global price of iron ore is in five year low.
He continued that, at the present condition, when the market and demand for iron ore is lower than ever, the lower grade iron ore produced in iron ore is not expected to be competitive at all. The export tax was implemented by the government when the iron ore prices were high and mighty, but things had changed and the government has to recall the export charges.
He further stated that, the ore being mined in Goa, including, Vedanta owned Sesa, are mainly low grade iron ore, which is not highly preferred by the Indian manufacturers, and the story is same in the global market as the price of low grade iron ore is also much lower in the global market.
It is expected that, the Finance Minister, is likely to take in mind the demand for the removal of export taxes in order to encourage outbound shipments.