Mumbai : The country's outward iron ore shipment declined 11 per cent in December on account of export duty imposed on the raw material by the government during the month, as importers in China could not absorb the re-aligned price from Indian miners.

Instead, Chinese importers preferred buying from alternative sources like Brazil and Australia. Iron ore exports slipped to 12.37 million tonnes (mt) in December 2009 compared to 13.85 mt in the corresponding month last year, according to data compiled by the Federation of Indian Mineral Industries (FIMI), the representative body of iron ore miners.

FIMI Secretary General R K Sharma attributed the fall to the government's decision to levy ad valorem export duty of 5 per cent on fines and 10 per cent on lumps, effective December 24, 2009.

Sharma feared that iron ore exports would go down to "nil" if the government increased ad valorem export duty to 20 per cent, as industry observers anticipate. During the current financial year, FIMI estimates iron ore exports to be in the range of 104-106 mt.

Total exports during the first nine months (April-December) of the current financial year, however, recorded a jump of 15.15 per cent to 76.54 mt, as against 66.47 mt in the comparable period last year.