Wednesday, June 08,
In a drive to encourage usage of iron ore fines in the domestic market, the Central Government will now give priority in iron ore mine allocation to steel companies that manufacture iron ore pellets.
This would reduce the need to export iron ore fines and would also force many resource exporting companies in Karnataka and Goa to sell their produce in the domestic market, said a senior official in the mines ministry.
Typically, iron ore comes in two categories; fines and lumps. While lumps are more easy to use in steelmaking, fines have been traditionally neglected by steel plants.
“A pelletisation push will create a domestic market for iron ore fines that have either been stockpiled for decades or been exported by the million of tonnes,” added the official
Indian steel giants like SAIL plans to build a 4 million tonnes pellet plant at each of its mineheads in Gua, and Bolangir in Orissa, and also has plans for a 2 million tonnes plant in Bhilai.
Jindal Steel and Power is also designing a project at Angul project to take only 35% lumps and will need pellets. While Essar is setting up a 12 million tonnes plant near Paradeep, Orissa and it already has an 8 million tonnes plant at Vishakpatnam.
“Considering the large investment required in core sector industries like steel, it is important to have assured source of supply of raw materials,” said Jatinder Mehra, director at the Essar Group .
The share of fines against lumps is steep in Goa and Karnataka, at 80:20. If exports are restricted in the future, as was done in Karnataka to tackle illegal mining, miners with pelletisation plants won’t suffer, say industry executives.
Source: The Economic Times
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