Friday, September 30, 2022

Ministry allows SAIL to offload 25% of iron ore production

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New Delhi: Ministry of Mines has allowed SAIL to offload in a year up to a quantity equivalent to a maximum 25% of total iron ore production in the previous year. It will be subject to clearance from the respective State Governments, where the mines are located, after following due procedure. It is valid for a period of 2 years. The order means that around 7 million tonnes of iron ore, produced at its different mines in the states of Jharkhand, Odisha and Chattisgarh, can be offloaded by SAIL to the domestic market after getting necessary clearance from the respective State Governments. This will enable SAIL to not only fulfil its own requirement but also to partially cater to a shortfall in domestic iron ore requirement.

“The lease of 31 working mines of iron ore is expiring on March 31, 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 Ministry, SAIL has also 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. In this regard also necessary permission have to be taken from the States, where the mines are located.  It is a definitive step towards Environment Protection as well as the release of value from hitherto dumped material.

It is important to mention here that as per provision of Section 8A(6) of Mines and Minerals (Development & Regulation) Act, 1957 (in short, MMDR Act, 1957), the lease of 31 working mines of iron ore is expiring on March 31, 2020. After the expiry, it is expected to lead to a shortfall of 60 Million Tonnes of iron ore in the market.

“Ensuring raw material security for the Indian steel industry has been at the top of our agenda. Our Government has taken several efforts towards this and the orders passed by the Ministry of Mines is an important step in this direction”-Dharmendra Pradhan

Reacting on the ministry’s order Steel minister Dharmendra Pradhan has 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 orders passed by the Ministry of Mines is an important step in this direction”.

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