Indian state-controlled iron ore pellet producer KIOCL has temporarily shut operations at its 3.5mn t/yr Mangalore plant again after briefly restarting it on 12 August.
"Mangalore has once again been temporarily suspended with effect from 23 August due to shed full condition," the company said on 24 August. This was the result of a lack of demand in the domestic market and unviability in the international market because of the government's export tax on pellets, KIOCL said.
The producer had suspended its Mangalore operations on 7 June after the government imposed a 45pc duty on iron ore pellet exports on 22 May to safeguard domestic supplies and help curb inflation. The firm restarted its operations on 12 August but did not provide any details on where it plans to supply its pellets.
The export duties have effectively paused shipments and forced producers to supply the domestic market. The government has reached out to the mining industry as it seeks to mandate beneficiation of low-grade iron ore that will boost supplies in the country.
KIOCL is a export oriented unit that exported 98pc of its pellets in the 2021-22 fiscal year to 31 March.
