Ministry Of Steel Pushes For Use Of Iron Ore Fines In Production To Preserve Reserves
Date
10/7/2024 2:14:04 PM
(MENAFN- KNN India)
New Delhi, Oct 7 (KNN) In a significant move to optimise raw material utilisation, the Ministry of Steel has issued directives to integrated steel manufacturers, urging them to incorporate iron ore fines into their steel production processes after beneficiation.
This initiative comes as part of a broader strategy to enhance the availability of essential raw materials at competitive prices within the industry, reported ET.
Sources close to the matter reveal that the ministry has also encouraged steel producers to explore international opportunities for acquiring coking coal mines.
This recommendation aims to address the country's heavy reliance on imports for this crucial steel-making component, potentially securing a more stable and cost-effective supply chain.
The ministry's guidance stems from concerns over the finite nature of India's iron ore reserves. By promoting the use of low-grade ore through beneficiation, authorities hope to extend the longevity of these valuable resources.
"It has been conveyed to them that iron reserves are limited in the country and to preserve that, players must also use low grade ore through beneficiation process. They can also look for coking coal mines outside India," an insider disclosed.
Iron ore and coking coal stand as the primary raw materials in steel production, particularly for the blast furnace method. While India boasts abundant iron ore deposits, the nation faces a significant shortage of domestic coking coal, necessitating substantial imports to meet industry demands.
Traditionally, major steel producers have favoured high-grade iron ore lumps, containing 65 per cent or more iron content, for blast furnace operations.
The push towards beneficiation of these lower-grade materials represents a shift in industry practices, although it is noteworthy that this process may lead to an increase in overall production costs.
(KNN Bureau)
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