NEW DELHI: The government has allowed state-owned Steel Authority of India Ltd to sell 25% of its iron ore production from captive mines and dispose off another 70 million tonnes low grade iron ore dust and fines accumulated over the years in the open market.
The mines ministry has in an order allowed SAIL to sell upto to 25% of total iron ore production in the previous year subject to clearance from the respective State Governments, where the mines are located, after following due procedure.
Steel minister Dharmendra Pradhan said, “Ensuring raw material security for Indian steel industry has been at the top of our agenda. Our government has taken several efforts towards this and the order passed by the ministry of mines is an important step in this direction”
The order is valid for a period of two years. This implies that around seven million tonnes of iron ore, produced at its different mines in Jharkhand, Odisha and Chattisgarh, can be offloaded by SAIL to the domestic market after getting necessary clearance from the respective State Governments, an official statement said.
“This will enable SAIL to not only fulfill its own requirement, but also to partially cater to shortfall in domestic iron ore requirement,” the statement said.
As per provision of Section 8A(6) of Mines and Minerals (Development & Regulation) Act, 1957, the lease of 31 working mines of iron ore is expiring on 31.03.2020. After the expiry, it is expected to lead to a shortfall of 60 Million Tonnes of iron ore in the market.
In a separate order issued by the mines ministry, SAIL has been allowed to dispose of the old stock of 70 million tonnes of low grade iron fines and ores (including slime) lying dumped across different captive mines of SAIL, after getting necessary permission from Jharkhand, Odisha and Chattisgarh.
“It is a definitive step towards Environment Protection as well as release of value from hitherto dumped material,” the statement said.
Fonte: The Economic Times
