Centre revises pricing norms for low-grade iron ore

The Government of India announced on April 14 an amendment to revise pricing norms for low-grade iron ore to improve utilisation and reduce wastage.

Legal Framework: The Ministry of Mines notified the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession (Third Amendment) Rules, 2026 on April 10, introducing a methodology for calculating the Average Sale Price (ASP).

Coverage: The amendment applies to iron ore with iron (Fe) content below the 45% threshold value, including Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ).

Nature of BHQ & BHJ: BHQ and BHJ are low-grade, iron-bearing rocks of Precambrian origin that have traditionally been treated as waste due to low iron content.

Threshold Value Concept: The threshold value refers to the minimum mineral grade below which extracted material is considered waste and discarded.

Objective: The reform aims to curb wastage, enhance utilisation of low-grade ores, and ensure a steady supply of raw material to the steel industry.

Significance: The move promotes scientific mining, supports mineral conservation, and helps address the depletion of high-grade iron ore deposits in India.

Source: TH