Iron ore miners are hoping the government acts fast on their demand to reduce export duty rates, as mentioned in Part One, since the mining ban in states like Goa is not expected to go away any time soon.
A commission of inquiry found last year that mining companies in Goa had exported about US $6.2 billion worth of illegally mined iron ore. Mining accounts for 25 percent of Goa’s economy and is the largest industry, even beating tourism for which the state is known globally.
In Australia, where iron ore is also huge export business, the gap between demand and supply in the global markets because of India faltering has come as welcome news.
A report in The Sydney Morning Herald said Australian miners were all set to cash in on the rebounding prices of ore, and the latest figures showing that a record amount of the commodity had been shipped in December 2012.
The report quoted the authority in charge of Port Hedland in Western Australia as saying that 26 million tons of iron ore had been shipped during December, which was the highest monthly trade in history.
Port Hedland is the nation’s most well-known multi-user port for iron ore, and its previous monthly export record of 22.8 million tons was set in August 2012.
China imported 20.2 million tons via the port in December last year as compared with 16.17 million tons the previous month, the report said.
Spot iron ore prices in Australian markets have been climbing northwards over the last two months, recovering from a sharp fall in July and August, even touching a 15-month high of $149.80 a ton some days ago, thanks to demand from China.
The combination of higher prices and export volumes had also bolstered the share prices of Australian mining companies of late, which had come under strain last year.