Sponge Iron prices gained momentum after cabinet ministers had passed new mining bill on 30th Sep.
According to new bill, coal companies will have to share 26 per cent of their net profits with the project affected people.
Miners of other major minerals such as iron ore and bauxite have to shell out an amount equal to the royalty paid to the States.
Industry experts say that iron ore and coal prices will go up as cost will be passed on the consumer.
Sponge prices moved up by Rs 200-300per tonne on anticipation. “There is already a crisis of iron ore in the market.New bill will certainly increase the raw material cost said an integrated steel manufacturer.
Leave a Reply