Merchant miners have got almost double the number of iron ore mines than steel makers between 2001 and 2007, which the metal manufacturers think is not in the national interest. Out of 260 iron ore mines, for which the ministry has approved mineral concessions during the period, 172 went to merchant miners, according to information available on the website of the Ministry of Mines. Merchant miners were acquiring these mines mainly for export purposes, without adding value. Iron ore, an important raw material for making steel, is being increasingly exported to other countries, mainly to China. India exports about 94 million tonnes of iron ore a year and of that 85 per cent goes to China alone. India's iron ore exports have gone up to 78 million tonnes in 2004-05 and further to 89 million tonnes from just 65 million tonnes in 2003-04. This trend has continued and official figures show during April to December, 2007, the ministry had given mineral concession approval totalling to 45 mines and 34 of them were to the merchant miners. "All countries with limited sources conserve their iron ore for the long-term assured supply for developing domestic industry through fiscal and physical means,' Indian Steel Alliance President Moosa Raza had said in a letter to the prime minister recently. In addition to that, an export cess of Rs 300 levied on per tonne of iron ore is virtually nothing compared to the rise in spot market iron ore prices. "Spot market prices of iron ore, which was about $62-70 in February-March 2007, have now crossed $140 per tonne. This itself is acting as a grade incentive to the exporters,' Raza said. He suggests the need to protect and conserve iron ore reserve in the country by levying a reasonable level of export cess on ad-valorem basis. It requires 1.6 tonnes of iron ore with 64 per cent FE content to make one tonne of steel.