Govt to undertake project to reassess iron ore deposits

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New Delhi, Oct 3: On the backdrop of a raging debate in the country on the desirability of iron ore exports mainly because of an assumption of scarcity of resources like hematite and magnetite, the government will soon undertake a project to reassess the iron ore deposits in the country.

“Re-assessment is necessary on two counts. Countries like China have successfully utilised lower Fe content and we now need to look if we can include lower grade Fe in determining our reserves,” mines secretary Shantanu Consul said.

Consul added that with new steel plants coming up in the country the demand for captive mines has increased. Re-assessment of the iron ore deposits will enable the decision makers to know the size and the availability of existing resources so that it can be distributed in a fair and equitable manner.

The ministry holds the opinion that the current estimate of more than 25 billion tonne iron ore resources as per National Mineral Inventory is too conservative, as the conversion of resources into reserves is a function of detailed exploration as well as threshold values/cut-off grade of iron content in the ore.

More so, with the technological upgrade in utilising low-grade ores in steel making, the lowering of threshold value/cut-off grade in assessment of reserves/resources has become necessary.

According to industry body Fimi, the cut off grade of 55% Fe content in the ore has by and large been considered by the exploration agencies in the country for assessment of iron ore reserves, the same needs to be lowered down in the present scenario. “Indian Bureau of Mines is already engaged in revision of threshold values of iron ore but keeping in view different parameters being considered in different regions for the assessment of iron ore resources and also taking into account considerable variation in the ore characteristics, a realistic assessment of iron ore deposits particularly in free-hold areas is called for at this stage,” Fimi had said.

The ministry now wants hematite ore up to 45% Fe cut off have to be reassessed for the country. GSI has initiated a number of iron ore investigations in the country in freehold areas.