Lean grade iron ore policy likely to be mandatory for mining owners, captive users

NEW DELHI: Policy related to the usage of lean grade iron ores will be made mandatory for the mining owners and captive users, failing in compliance with the new norms may result in punitive action, as per sources. Non-compliance with the policy norms may lead to the cancellation of the mining lease. The draft paper has been issued for public consultation and it will be notified, the sources said.

As per a mining ministry panel, low-grade iron should be upgraded to high-grade iron ore through beneficiation and upgradation instead of keeping it is as it.  This has been recommended to protect the environment and minimise the energy requirement in downstream processes to make steel. 

Most industry associations are against such punitive policy as they are looking for some incentives so that beneficiation becomes economically viable, which is not the case at present. 

The government had set up an inter-departmental committee to suggest methods to ensure better utilisation of lean-grade iron ore resources. Recently, steel secretary Sajay Kumar Singh on Wednesday emphasised the need for beneficiation for the proper utilisation of the rising percentage of low-grade iron ore.

He stated that there has been an increase in lean-grade iron ore over a period of a few years.  Meanwhile, Jyotiraditya M Scindia, minister for steel and aviation, in an event organised by the Indian Institute of Metals, Delhi Chapter also stressed the circular economy for the conservation of resources.

“The metal sector needs to be at the forefront of the circular economy model in view of its pervasive applications, besides the inherent potential of metals to be amenable and adaptable to business models following 6R principles of Reduce, Recycle, Reuse, Recover, Redesign and Remanufacture,” the minister said.

“Consensus seems to have emerged across the globe that a circular economy is the only way towards conservation of resources and the metal sector needs to be at the forefront ,” Scindia added.