Karnataka produces 20% of nation's iron ore

Prices expected to go up if ore movement is banned

Domestic iron ore may be headed for a glut or deficit situation, depending on how the Karnataka government's somewhat abrupt move last week goes. The state's decision to ban iron ore exports off its shores may be a political decision, aimed at curbing illegal mining in the Bellary area, especially by the Reddy brothers who are ministers in the Karnataka cabinet, but will have business ripple effects far and wide.

Although much of the ore is exported from New Mangalore, the only major port in the state, the other nine ports will be hit. But because the ore'

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