The 2nd day of the “National Conclave on Mines & Minerals” observed technical sessions on Raw material scenario for the steel industry and discussions on upcoming mineral block auctions in different states of India.
As the outcome of the conclave, Ms. Aruna Sundararajan (Union Steel Secretary) laid the impetus that all the stake holders in the mining sector must work together to raise the share of mining in GDP from current 2.4% to 6%.
The various challenges that India’s mining industry is currently going through were also highlighted in the discussions held today. Some of the prominent ones are as follows:-
Regarding low grade iron ore blocks to be put up for auction: Market players informed that few upcoming iron ore blocks to be put up for auction are of low grade ore (less than Fe 45%) for which currently there is no segregation in the average sale price published by Indian Bureau of Mines (IBM) for below Fe 55%.
Addressing this issue, IBM officials shared that they would come up with two new slabs Fe 45 to below Fe 50%, and Fe 50 to below Fe 55%.
On issues related to current iron ore price scenario in Karnataka e-auctions : Sponge iron units located in Bellary district of Karnataka highlighted the tough scenario they are going through amid unmoved iron ore prices in Karnataka e-auctions. They also shared that many plants have shut down the operations owing to this.
Addressing their concern, ministers said that their concern will be taken into consideration so that the industry may prosper as whole.
Expedition of pending mining leases: Addressing the issue of pending renewal cases of mines, government officials stressed the need to expedite them.
In conversation with SteelMint, Mr. Deepak Mohanty (Director of Mines, Odisha) shared that Odisha’s iron ore production is expected to touch 100 MnT in the current fiscal and it is likely that Supreme Court may order few major merchant mines to become operational shortly following which state’s iron ore production will increase further.
Naxalite issues that may hinder mineral exploration: With few mines that would be coming up for auction located in interior areas where Naxalite attacks may hinder the exploration activities. Steel ministers shared that though it will be a tough task but they will go ahead exploring the resources along with all protective measures.
Way ahead – In the concluding session, Mr. Balvinder Kumar (Union Mines Secretary) invited the industry participants to come out with exploration plans. So far the ministry has successfully auctioned 7 mine blocks and for around 31 blocks NIT’s have been issued. We expect 60-70 blocks to be auctioned by Mar’17. Apart from this, recently launched National Mineral Exploration policy has paved way 100 blocks that have been identified by Geological Survey of India (GSI).
Of India’s entire Obvious Geological Potential (OGP) area, identified by GSI, only 10% has been explored and mining is undertaken in 1.5-2% of this area.
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