Open Mines to Meet State’s Iron Ore Demand: Steel Majors

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Various iron and steel manufacturers recently urged the government to improve the condition of iron ore supply in the State.

The Karnataka Iron and Steel Manufacturers’ Association and the Association of Indian Mini Blast Furnaces demanded that the government finish the opening of 50 ‘A’ and ‘B’ category mines in order to increase availability of ore from 18 million metric tonnes (MMT) to 30 MMT. The total requirement of iron ore from the State is estimated to be 36 MMT but the Supreme Court placed a cap on production at 30 million tonne per annum (mtpa).

Binod Nowal, deputy MD, JSW Steel, said the government must finish the auction of ‘C’ category mining leases for end users within the next two months and grant fresh leases to industries to reach the permitted production of 30 mtpa.

Alleging that mining lessees had formed a cartel and were increasing the price of freshly produced iron ore by more than 70 per cent of the price offered by the National Mineral Development Corporation, Nowal urged the government to appoint a retired judge of the High Court or Supreme Court to fix prices. The SC had allowed the lessees to decide the price for freshly produced iron ore.

RK Goel, MD, Kalyani Steel, Sukethu Shah, vice-chairman, Mukunda Steel and Dinesh Singhi, MD, BMM ISPAT, were present.
Source: Express News Service