FIMI seeks export duty withdrawal on bauxite

New Delhi: Miners' body FIMI has sought withdrawal of export duty on bauxite, stating that the move will lead to optimum utilisation of low-grade mineral resources as it will expedite reopening of closed bauxite mines, create jobs and earn foreign exchange.

Bauxite is the principal ore of aluminum and therefore the mineral is the essential raw material for aluminium producers.

"The export duty of 15 per cent on bauxite is detrimental to the Indian non- metallurgical bauxite producers and exporters. This Federation therefore request for complete withdrawal of export duty on exports of bauxite," FIMI said in its pre-Budget proposals to the finance ministry.

India, it said, is not only self-sufficient in meeting its requirement, but has huge potential to be a major player in the international bauxite market. Domestic alumina and aluminum producers have their own captive mines or meet their requirement from mines located in eastern and central parts of the country, which contain plant grade bauxite.

On the other hand, bauxite deposits occurring in the country's west coast (low in alumina content and high in silica) are technically not suitable and economically unviable for the refiners/smelters in the country. However, such non-plant grade bauxite is accepted in certain countries on account of the paucity of the mineral and availability of technology for using low-grade bauxite. Effectively, exporting the sub-par non-plant grade bauxite from the country's west coast leads to generating direct and indirect employment for more than 50,000 labourers, principally in the Jamnagar/Porbandar region of Gujarat.