Pitching for a definitive deterrence on exports of iron ore,Steel Minister Virbhadra Singh today suggested the imposition of a prohibitive duty or imposition of quantitative restrictions on its export to ensure raw material security for domestic steel giants. Arguing that Indian steel companies were clamouring for raw material security,Singh said they were seriously concerned over the rise in prices of iron ore and coking coal with an added concern that annual contracts for these minerals have been abandoned by the mining companies and instead has been replaced by quarterly contracts. Although a large segment of the Indian steel producers remain insulated from the dynamics of the global iron ore market,yet the increasing dependence on global sourcing of coking coal remains a major concern, he pointed out. Steel Secretary Atul Chaturvedi said if the steel makers want iron ore mines they should be willing to invest in prospecting or reconnaissance operations to legitimize their claim on it. He pointed out that in the early sixties both Australia and India quantified their reserves and since then the ore reserves of the Aussies have jumped up to 300 times,while India could only enhance its reserves by only 35-40 per cent.
