The Business Line reported that a committee set up by the India’s Ministry of Mines has recommended steps for beneficiation and up gradation of low-grade iron ore into higher grade ones. Recommendations state that at least 80% of the low-grade ore with iron content of less than 58% produced in a year be upgraded to higher grade ore of 62% iron content, failing which steep fines and mine lease termination should be levied.The committee has recommended penalty for failure to adhere to the mandate too. Lessees are to be assessed on a quarterly basis and if they fall short of 80% beneficiation clause, they shall pay the State Government an amount of royalty and premium as applicable to iron ore lumps or fines of 62-65% grade with penalty being the shortfall amount.The committee’s finding show that 121 million tonnes of iron ore of different grade are lying unused at different mine pitheads, about 55% of which are fines with less than 58% Fe contentThe report highlights that nearly 17% of total iron ore produced in India are of low grade while steel mills are known to use premium iron-ore grade of 62% and above ores of lower grade are preferred for exports, which have been badly hit after imposition of export taxComments have been sought from industry bodies like the Federation of Indian Mineral Industries, the Indian Steel Association, FICCI, CII, Pellet Manufacturers Association of India and Assocham.
The Business Line reported that a committee set up by the India’s Ministry of Mines has recommended steps for beneficiation and up gradation of low-grade iron ore into higher grade ones. Recommendations state that at least 80% of the low-grade ore with iron content of less than 58% produced in a year be upgraded to higher grade ore of 62% iron content, failing which steep fines and mine lease termination should be levied.The committee has recommended penalty for failure to adhere to the mandate too. Lessees are to be assessed on a quarterly basis and if they fall short of 80% beneficiation clause, they shall pay the State Government an amount of royalty and premium as applicable to iron ore lumps or fines of 62-65% grade with penalty being the shortfall amount.The committee’s finding show that 121 million tonnes of iron ore of different grade are lying unused at different mine pitheads, about 55% of which are fines with less than 58% Fe contentThe report highlights that nearly 17% of total iron ore produced in India are of low grade while steel mills are known to use premium iron-ore grade of 62% and above ores of lower grade are preferred for exports, which have been badly hit after imposition of export taxComments have been sought from industry bodies like the Federation of Indian Mineral Industries, the Indian Steel Association, FICCI, CII, Pellet Manufacturers Association of India and Assocham.
