New Delhi, Sept. 15 -- India's largest iron ore miners and steelmakers have locked horns over a potential government move to impose an export duty on low-grade iron ore, with the former seeking free exports while the steel industry wants to discourage such shipments. The dispute pits miners such as Vedanta Ltd's Sesa Goa Iron Ore and Rungta Mines Ltd against steel titans such as JSW Steel Ltd and ArcelorMittal Nippon Steel India.

The government is considering a uniform export duty on all grades of iron ore, a policy move intended to lower raw material costs for domestic steel producers and boost India's manufacturing sector. A final decision could be announced as early as October, following monsoon season. While high-grade iron ore curre...