Mac Bank: Indian iron ore exports to rebound

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From Mac Bank:

India’s finance minister has announced that the country will reduce export taxes for low grade iron ore from the current 30% to 10%. The cut will apply to ores with grades lower than 58%Fe and as such, will benefit miners in Goa where output is generally lower grade and where mining is due to restart following years of government enforced closures. At its peak in 2010 Goa exported 54mt of iron ore, although this included blended tonnes from neighbouring Karnataka and output from mines that have been permanently closed. In 2014, exports were just 2mt. Traders we have spoken to expect exports from Goa could reach 10-15mtpa after the monsoons have passed.

Add that to Africa’s Tonkolili revival and that’s 40 million tonnes of supposedly dead iron ore that’s back.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.