Iran hints on imposing hefty duty on iron ore exports

TEHRAN (Scrap Monster) : The Government of Iran is reported to be in talks with miners to impose a duty on iron ore exports from the country. The move is believed to compensate for the loss in revenue due to the existing ban on oil and other commodities due to the sanctions imposed on the country.

According to sources, the country is planning to implement a duty as high as 40% on exports of iron ore from the country. The Iran Iron Ore Association stated that the proposed duty is on the higher side and may lead to export cuts. The Association believes that the Government may come down on the rates during the course of ongoing negotiations.

The exports of iron ore from the country to China- world’s largest consumer of the raw material, has surged by nearly 50% during the first quarter of the year in comparison with the same quarter a year ago. The country’s total exports to China during Q1 2013 were 5.68 million tonnes.

The Government intends to take due advantage of the huge increase in exports to China, especially when the country is deprived of benefits from its huge oil resources. The imposition of 40% export duty is estimated to fetch approximately $3 billion revenue for the country.