Mining firms are exporting iron ore in a big way on the back of increase in the price of the commodity in the global market and depreciation of rupee.
Many miners are exporting iron ore fines and pellets to China as the price of the commodity rose considerably in recent days. Sources indicate that the prices of pellets rose from Rs 6,200 per tonne a month ago to Rs 6,700 per tonne currently.
According to industry sources, exporters were waiting for the government to reduce export duty on ore. But they are no longer waiting for this as the prices have improved in the global market and the rupee has been depreciating against dollar.
It may be recalled that in recent period, export of iron ore declined as the government raised duty on shipment and rail freight charges.
Of the total pellet production of 38 million tonne, about 25 million tonne is consumed in India while the remaining 13 million tonne is available for exports.
There was a 73 percent fall in ore export between 2012 and 2013 to 18.66 million tonne as against 68 million tonne in the previous year.