Iron ore resources may see 30% jump, to come as huge boost for steel sector
The government proposes to reduce the threshold limit of iron content in ore deposits from the current 55% to 45%. Once implemented, this would unlock large resource areas in the country where no mining was being undertaken so far due to below-par quality of ore. The issue has been highlighted in the draft new steel policy set to be finalised by July-end.
"Our estimate is that the new classification may add up between 5-10 billion tonne of additional iron ore resource in the country. Though at 45%, the ore quality will of of low grade, the same could be used by the steel industry through the process of beneficiation and pelletisation," said a mines ministry official asking not to be named.
The Geological Survey of India — the principal agency for geological mapping and regional mineral resource assessment of the country — has already been entrusted with the work to reassess the resource base in the country as a result reduction in the threshold limit.
“This is ag ood development as mining lower grades of ore will enhance availability of the key raw material for the steel sector. This has been done successfully inn several other countries,” said Federation of Indian Mineral Industries secretary general R K Sharma.
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