An exhaustive report into illegal mining in the Indian state of Goa has also accused China of using up all of India's iron ore reserves.
The China Iron and Steel Association has rejected assertions that it is to blame for "gobbling up India's iron ore reserves" while, at the same time strategically choosing not to mine its own deposits of the metal.
The charges were laid at the feet of the Asian giant by a report into illegal iron ore mining in Goa by the Justice M.B. Shah Committee. The report, which pegged Goa's mining scam at nearly $6.5 billion, also noted that ``China had strategically stopped short of tapping its deposits of 200 billion tonnes''...and suggested that the ``Central government should consider banning exports of Indian ore.''
It added, ``Planning and conservation of iron ore for at least 50 years is required for Goa so that future generations may not be required to import entire steel from China and likewise countries.''
The report added that while India was exporting ore to China, China was exporting steel back to India and had stopped tapping its domestic deposits. ``It would not be out of context to state here that China...prefers to import from countries like India and others. The ministry of mines, steel, commerce and industries have to sit together to give serious thought for banning export or in the alternative to permit minimum export of iron ore from the country.''
Ms Qu Xiuli, a deputy secretary general of the CISA, told a local news website that China's crude iron ore output has been rising by 20% annually. She said that, ``The CISA encourages exploitation of domestic mines, and aims to reduce imports to bring the price of iron ore under control.''
She added that China's imports of iron ore from India have been declining.
Imports from India have declined since the beginning of 2012, following a rise in Indian export duties to 30% on December 30, 2011 from 20% earlier.
China, on the other hand, imported 62.45 million metric tonne of iron ore in August, up 6% year on year, and 8% month on month, data released by the General Administration of Customs of China over the weekend showed.
A report from LGMT Research, a market consulting firm for the steel industry, had also noted that Indian iron ore took up around 11% of China's overall imports of iron ore in 2011, a decline from 15.6% in 2010. The report has highlighted that the decline was a consequence of the hike in export duties imposed by India in recent years.
Moreover, boosted by a slew of infrastructure projects in China and a new round of quantitative easing by the United States, prices of imported iron ore at 25 major ports in China increased during the week ending September 17 from the previous week.
Furthermore, iron ore stockpiles stood at 101.51 million metric tonnes, down 370,000 metric tonnes week on week. The price rebound far exceeded market expectations due to investment projects announced earlier this month by the country's top economic planner.
Authorities in China have approved 55 investment projects worth $157.7 billion (1 trillion yuan)) to build highways, ports and railways across the country.