The Steel Ministry and the mining industry have finally found a common ground in opposing state-run mineral trading giant MMTC’s proposal to ensure canalisation of all iron-ore trade from the country through it. While the ministry found no logical reason behind the proposal, the miners boldly said the trading arm is incapable of securing better price realization as it just signs the dotted lines.

The Minerals and Metals Trading Corporation (MMTC) has recently forwarded a proposal to the government seeking canalisation of exports of both high-grade and low-grade iron ore from the country, arguing that it has been exporting the mineral for over three decades and has in the process carved a ‘niche’ for itself. Besides, its foreign buyers have reposed tremendous trust in it for ensuring timely supplies.

The PSU said it has the wherewithal to collect surplus production from mining areas, blend them to ensure quality and organize transport, handling and delivery by effective utilization of rail and port infrastructure for shipment in bulk carriers to the foreign buyers and no other single agency can do so. “In view of the above, there is a need to revisit the export policy to canalise the iron ore exports, irrespective of grades, through a single agency in the overall national interest. The negotiating leverage will also result in better realization to the mining industry in India,” the PSU says.

But the Steel Ministry seems to be unimpressed with the proposal and in fact opposed it saying it has no logical reason behind it. “No, we are not in favour of the proposal (put forward by MMTC) as we find little reason behind doing so,” Steel Secretary Pramod Kumar Rastogi told The Indian Express. He opined that after due deliberations, his ministry has inferred that it would be a needless exercise.

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