The Ministry of Mines has called upon the steel and iron ore industry to look into iron ore beneficiation, saying it will bear fruit in the medium to long term. The government is working on a beneficiation policy that will better utilise India's mineral resources.
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The Ministry of Mines has sought stakeholder comments by 31 August 2022 on a beneficiation policy to ensure better utilisation of low and lean grade iron ore resources. Why is iron ore beneficiation significant to Indian steel industry? As envisaged in the National Steel Policy, 2017, steel-making capacity in India is expected to reach 300 million tonnes in 2030-31. Consequently, iron ore being the principal raw material for the production of steel, its requirement/consumption would be around 437 mnt for achieving the 300 mnt crude steel target. To meet this future demand, it is essential to not only enhance the resource base of iron ore by continuously exploring both greenfield and brownfield blocks but also important to utilise low-grade ores, mines rejects, plant tailings etc through the adoption of suitable beneficiation and agglomeration techniques.India has 135-140 mnt of beneficiation capacity currently but capacity utilization is very limited because tailing generation over a period of time is choking the space available with the plants. Odisha has largest share of around 55 mn t beneficiation capacity followed by Jharkhand & ChhattisgarhThe Ministry set up a committee, which after several deliberations has recommended the following: A mandate that will require 80% of the total mineral below 58% Fe grade produced in a year to be upgraded to 62% Fe grade and above.
In case the lessee, who is to be assessed quarterly basis, falls short of this mandate shall pay the state government an amount of royalty and premium as applicable to iron ore lumps or fines of 62-65% grade on the shortfall.
A reconciliation of the total amounts will be allowed at the end of the year, and if the lessee reaches his annual mandate then his previously paid amount for quarterly shortfalls will be adjusted against dues for the last quarter of that year.
For non-auctioned mines, such shortfall will attract an amount equal to the four times of royalty to be paid on iron ore of grade 62-65% Fe (lumps or fines) in addition to the actual royalty to be paid on such quantity at the time of its removal or consumption.
If the lessee fails to beneficiate 80% of low grade material for two consecutive years and pay the amount - royalty applicable on 62-65% for the differential amount - then he could see his lease terminated. Further, the state government may pre-empt such low-grade material, below 58% Fe content, and suitably dispose of it.
The centre proposes to revisit the policy after 5 years. Beating the mandate will get lessees additional marks in the star rating. For more such updates on iron & steel sector, please visit www.steelmint.com
9 сен 2024
