In a bid to remedy the problem of misclassification of iron ore grades and the resulting loss of revenue to state governments, the Union Ministry of Mines (MoM) has decided to set up a special committee with representation from all iron ore-rich states to examine ways of preventing the misclassification, or false reporting, of iron ore grades, SteelMint came to learn from government sources.
The committee has also been tasked with examining the adoption of state-of-the-art technology related to stacking of iron ore that could go some way in preventing the misclassification of grades.
In this context, the proposed committee, to be headed by the Joint Secretary, MoM, is also expected to examine the possibility of applying drone and GPS-enabled tracking to monitor iron ore movement from mines to factories or ports, as per reports.
The committee also has the authority to suggest punitive action that could be initiated against miners, traders and/or transporters for misclassified minerals. The special committee has been asked to submit a report within six weeks.
Misclassification of iron ore grades is rampant, as government notifications from time to time reveal. It is a practice widely followed by miners and exporters to evade higher revenue or duty on the mineral.
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