New Delhi, Sept. 15 -- India plans to impose a duty on exports of low-grade iron ore, expanding a levy currently applied only to high-grade ore. The plan has upset companies that mine ore, but cheered steelmakers that use the ore in manufacturing. Mint breaks down the issue.

The government is planning to impose a uniform export duty on all grades of iron ore, in a move to discourage exports and ensure ample local quantities for steelmaking. At present, exports of low-grade iron ore with less than 58% iron content are not taxed, while high-grade ores face a 30% export tax. With this move, the duty will now be extended to low-grade iron ores as well. It is expected to be implemented next month.

According to an executive from one of India'...