A proposed law in Karnataka could triple the tax burden on miners operating pre-auction-era iron ore mines, potentially squeezing their margins and triggering steel price hikes in response, experts said.
The Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, introduced in the state legislature on Monday, aims to impose two new taxes: one on mineral-bearing land and another on mineral rights for mining leases.
The bill has drawn sharp reactions from industry observers, as major players brace for its financial impact.
State-owned NMDC Ltd, along with private mining giants Vedanta Ltd and Sandur Manganese and Iron Ores Ltd, are the largest operators of pre-auction-era mines in Karnataka and will bear the brunt of the proposed tax.
Together, these companies account for a significant portion of Karnataka's iron ore production, which makes up roughly 15% of India's annual output of 280 million tonnes, according to BigMint, a market intelligence firm.
This story is from the December 19, 2024 edition of Mint Chennai.
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This story is from the December 19, 2024 edition of Mint Chennai.
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