Ranchi, Sept. 30: A representative organisation of companies with mining interests has criticised Jharkhand’s decision to ask the Centre to ban export of iron ore by captive as well as non-captive lease holders, throwing up yet another challenge to the Arjun Munda government. The Federation of Indian Mineral Industries (FIMI), with 350 member companies, said today the move was a face-saving measure of the state government that had recently allowed domestic sale of iron-ore fines by a couple of captive lease holders amid Opposition allegations of a “sellout”. The federation’s comment came on a day the Centre approved a landmark draft mines bill that provides for miners to share 26 per cent of their net profits for the people affected by coal projects. This bill seeks to replace the 1957 act. At a meeting on September 28, the state cabinet decided to approach the Centre with a request to bring required changes in the Mines and Mineral (Development and Regulation) Act 1957 and ban export of minerals, while sticking to its decision of allowing captive mines holders to sell iron ore fines. Bringing in a change in the act, FIMI accepted, was a decision of the Centre. “This (ban plea) is a face-saving device by the state government. The export of iron ore is a Central subject and in my opinion the Centre would not consider the state’s plea,” FIMI secretary general R.K. Sharma told The Telegraph over telephone from Delhi today. “The country imports coking coal, crude oil, etc, from other countries and exports the low quality iron ore fines mainly to China . Once we are able to utilise the full quantity of iron ore mined, we do not need to export the same. Let the market forces decide things. But if we put a ban on export at this juncture, the loss will be for all,” he explained. The decision, he added, would also add to loss of royalty for the state government and lead to unemployment in mining areas. State mines secretary A. K. Sarkar said the state government was in the process of writing a letter to the Centre. “We are simply going to write that export of iron ore, whether mined from captive or non-captive mines, should be banned. But for that a change in MMDR Act is needed and the Centre has a final say in the matter,” he said. While lease holders of captive mines are supposed to utilise the raw material in their respective steel plants, there is no such binding on non-captive lease holders who are free to sell the ore outside the state or export it. The Munda government has had a bad time on the issue. Last month the state allowed domestic sale of iron ore fines (low grade ore) by a couple of captive mines lease holders including Usha Martin and SAIL, but had to put the decision under suspension after Opposition protests. While SAIL has deposits of 196.50 lakh tonne of iron ore fines, Usha Martin has another 18 lakh tonne fines in stock. But over the last decade or so, both the companies have failed to set up plants to utilise the low grade iron ore as raw material to produce steel. Both the companies had approached the state government which finally took the decision on grounds of environmental degradation of Saranda forests where the mines are located. But the Opposition raised hue and cry during the monsoon session of the Assembly, alleging that the government had been “influenced” by the corporate houses. Later, the decision was kept under suspension, only to be revived on September 28.