Steel mills in India are opposing to a plea filed in the country’s top court to reopen iron ore exports from a Karnataka – a southern state, citing concerns about lower supplies to the domestic market. The Supreme Court concluded its hearing on Monday and deferred its decision on mining companies’ applications, including Vedanta Ltd, to remove a prohibition on the export of iron ore from Karnataka, The court has not set a date for its decision.
Since 2011, when courts identified illegal iron ore mining and enforced successive bans in the major producing states of Karnataka, Odisha, and Goa, India’s steel makers have suffered raw material shortages. While the restrictions have eased in some states, miners in Karnataka are mandated to sell the ore only locally and subject to output caps. India exports mostly low-grade ore, mainly to China.
