India: Mines ministry seeks greater thrust on iron ore beneficiation

• Ministry weighing new beneficiation policy
  
  
• Stress on coking coal supply security
  
  
• No update on NMI
  
  

Morning Brief: The Ministry of Mines has called upon the steel and iron ore industry to look into iron ore beneficiation, saying it will bear fruit in the medium to long term.

Sanjay Lohiya, Additional Secretary, Ministry of Mines, Government of India, said most companies do not want to beneficiate iron ore which is the need of the hour. Mr Lohiya was speaking at a joint opening session of the 5th Indian Iron Ore & Pellet Summit and the India Coal Outlook Conference 2022, organized by SteelMint in New Delhi over 3-4 August. "If our iron ore can go to China and get beneficiated there, we can do it here too," he said, requesting all mining companies and steel manufacturers who own blocks either captive or recently won in auctions to put some investment and efforts in beneficiation of iron ore.

"Ultimately, we have to develop our industry ourselves. Companies need to invest today and which may look fruitless, but will bear fruit a few years down the line. High-end technology is not required here but only a bit of effort," he said, adding it will improve the economics of the mine and the respective company as well. "Land and water sources are required. Today, dry beneficiation technology is also being implemented though," he said.

Beneficiation policy: The government is working on a beneficiation policy that will better utilise India's mineral resources.

As envisaged in the National Steel Policy, 2017, steel-making capacity in India is expected to reach 300 million tonnes in 2030-31. Consequently, iron ore being the principal raw material for the production of steel, its requirement/consumption would be around 437 mnt for achieving the 300 mnt crude steel target. To meet this future demand, it is essential to not only enhance the resource base of iron ore by continuously exploring both greenfield and brownfield blocks but also important to utilise low-grade ores, mines rejects, plant tailings etc through the adoption of suitable beneficiation and agglomeration techniques.

Some proposals have been suggested by a committee of IBM and vetted by the Ministry of Mines, under Mr Lohiya.

The policy aims to mandate 80% of the total mineral below 58% Fe content produced in a year to be upgraded through benefication to Fe62% and above.

In case of shortfall in beneficiating 80% of low grade iron ore, assessed on a quarterly basis, the lessee shall pay the state government an amount of royalty and premium as applicable to the iron ore lumps or fines of 62-65% grade on the shortfall amount.

More coal washeries: Mr Lohiya also called for more coal washeries along or outside the coal blocks which will allow access to more coking coal. Mr Lohiya basically stressed on securing coking coal supply, which, he said, was more important than securing iron ore supply, for steel mills at this juncture, because of volatility in global coking coal prices.

Stress on green steel: He also said over the next few years there will be a premium on green steel. He urged the steel industry to seek implementation of whatever government recommendations were required to remain competitive in future in terms of green steel.

Value-addition focus: Reminding that most countries are stressing on value-addition, he urged value-addition in areas spanning mining, pellets, sponge iron etc reminding of the PLI scheme already under implementation.

He concluded by saying the Ministry of Mines was open to suggestions from the steel industry to ensure continuous supply of raw material.

No update on NMI: The additional secretary, when asked by SteelMint, on any update on the status of the National Mineral Index (NMI), said there is none. He also said the amendment addressing royalty on royalty will not be cleared in the Monsoon Session of Parliament, declining to elaborate further on the topic.