Govt to come out with policy for improving low-grade iron ore in 3 months: Steel secretary Sinha

Govt working on policy for low grade iron ore beneficiation: Steel Secretary

The government is working on a policy to encourage upgrading of low-grade iron ore, steel Secretary Nagendra Nath Sinha said on May 17.  The move aims to maximise the use of ore with less iron content in steel production.

The ministry of steel was working with the mines and environment ministry to draw up the policy, Sinha said.

"The policy will be come into force in the next three months," Sinha told Moneycontrol on the sidelines of a national workshop organised by the ministry on "Forging Sustainability in Steel Sector".

Beneficiation of lower-grade ore involves various processes to increase the iron content and reduce impurities, making it suitable for industrial use.

While lump ore or high-grade iron ore contains 65.53 per cent Fe (iron), fines are inferior and have 64 percent and less Fe content.

The use of ore with less iron content needs beneficiation, which adds to the cost of steel production.

According to reports, in 2022, the mines ministry recommended steps for beneficiation and upgrade of low-grade iron ore into higher grade ones.

The recommendation said at least 80 percent of the low-grade ore (with less than 58 percent iron content) produced annually should be upgraded to higher-grade ore (with 62 percent iron content). It also proposed fines and potential termination of mine leases if the target is not met.

India’s iron ore production stood at 177.06 million tonnes in the April-November 2023 period, of which domestic consumption stood at 135.14 million tonnes, according to the Federation of Mineral Industries.