India's iron ore wealth to last for 200 years

Seeking to allay apprehensions of steel industry on iron ore availability, the Mines Ministry on Thursday said the country has enough ore to last for 200 years and mineral-rich states would not lose their say on allocation of mines in the New Mineral Policy 2008.

"The country has enough iron ore to last for 200 years. The steelmakers should adopt technologies to be able to use ore grade below 55 per cent Fe. If you come up with right technologies then you could conserve ore in right perspective," Mines Secretary J P Singh said here.

He said India is the only country where captive mining is encouraged and of the total output in the country, utilities like SAIL and Tata Steel produced 37 per cent from their captive mines at only Rs 350 per tonne as pithead cost.

Singh denied the contention of mineral-rich states that the new Policy seeks to curtail their rights vis-a-vis making priority allocation of mines to potential investors. There was nothing in the policy that could reduce their powers, he said.

Replying to a query on concerns expressed by steelmakers on unabated iron ore exports, the Secretary said only low-grade ore was being shipped to China as the domestic utilities lack the required technology to beneficiate the same.

He took a potshot at the Steel Ministry for projecting a production figure of 200 million tons by 2020, saying it was unclear how it would happen. "First they said India would achieve 110 MT production, then they revised it to 200 MT. I don't know which figure was closer to reality," he contended.