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Steel Ministry Takes Measures to Avoid Disruption in Iron Ore Supply

PTI reported that Indias Steel Ministry in its Annual Report for Financial Year 2019-20 said "A disruption in the supply of 45-50 million tonnes iron ore is expected in 2020-21 owing to the expiry of about 37 working merchant mines (250+ mines in total) on March 31, 2020. The Ministry of Steel along with the Ministry of Mines has worked out a strategy to mitigate the likely shortfall."

 

Steel Authority of India Ltd is permitted to sell 70 million tonnes of low-grade fines lying at its mines. The company was also allowed to sell 25 percent of the total fresh quantity mined from its captive mines. SAIL has over 20 captive mines spread across Jharkhand, Odisha, Chhattisgarh and West Bengal.

 

The ministry said it has also submitted a proposal for the Ministry of Mines for reducing the royalty on iron ore fines from the existing 15 percent to 5 percent to incentivize beneficiation and pelletization as well as reduce the stockpile of low-grade fines dumped at mine heads.

 

Amendment made in Minerals Mining acts by the Ministry of Mines will help the steel CPSEs to get their mines renewed with certainty.