The central government has banned states from allowing sale
or export of iron ore by companies granted mining leases for own steel
production. “The entire ore produced in the mining operation (of captive
mines) shall be used exclusively for own consumption in iron or steel making
and cannot be either sold in India or exported to other countries,” the
mines ministry said in an order issued on September 19, invoking Rule 27 (3) of
the Mineral Concession Rules 1960.
The move comes after the Jharkhand government allowed one time sale of iron ore
fines by Usha Martin and Steel Authority of India last year in a
controversial move. The two are among six captive mining leases granted to
steel makers in Jharkhand, where there are 40 iron ore miners.
Indian steel makers traditionally use iron ore lumps from mines, leaving out
ore fines smaller than 10 mm. As mines grow older, only about 30% of their
outputs are lumps with fines comprising the rest.
The move to ban sale or export of iron ore from captive mines clearly indicates
that Government wants to promote Pelletisation. Companies having captive mines
can use iron ore fines by removing moisture, beneficiating the ore and baking it
into tight balls or pellets, which are easier to transport and less polluting.
Pellets are a more efficient feed in steel making than fines
and help reduce coal requirement. Although most steelmakers can use pellet
feeds, only a few domestic steel makers have facilities to make pellets.
Source: The Economic Times
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