## Policy Summary: Recovery of Low-Grade Iron Ore
This document summarizes the Ministry of Steel's response to Lok Sabha Unstarred Question No. 266, concerning the recovery of low-grade iron ore (below 62 Fe content) in India, addressed on July 22, 2025. The question raised concerns about the disposal or stockpiling of low-grade ore, contrasting this with practices in countries like Brazil and China that utilize processing plants to recover ore as low as 42 Fe for pellet production.
The Minister of State in the Ministry of Steel, Shri Bhupathiraju Srinivasa Varma, stated that the steel sector is currently deregulated, and steel companies independently decide on the beneficiation and utilization of low-grade iron ore based on techno-economic factors and available processing plants. The response indicates that many iron ore miners already possess facilities for recovering and beneficiating lower grades of iron ore. Furthermore, the 2021 amendment to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) permits captive miners, including private players, to sell up to 50% of their mineral production annually after fulfilling the requirements stipulated in the MMDR Act. The policy suggests that the government is relying on existing market mechanisms and legislative frameworks to address the recovery and utilization of low-grade iron ore, rather than introducing new incentives or directives specifically targeting Public Sector Undertakings (PSUs) or private merchant miners.
Key Entities Referenced
Ministry of Steel: A government ministry responsible for policies related to the steel industry in India.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
Ms. Mahua Moitra: Member of Parliament who raised the unstarred question.
Brazil: Country mentioned as having process plants to recover low grade ore.
China: Country mentioned as having process plants to recover low grade ore.
MMDR Act, 1957: Mines and Minerals (Development and Regulation) Act, 1957, legislation governing the mining sector in India.
SHRI BHUPATHIRAJU SRINIVASA VARMA: Minister of State in the Ministry of Steel who provided the answer.
Public Sector Undertakings (PSUs): Government-owned entities that may be incentivized.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 266
FOR ANSWER ON 22.07.2025
RECOVERY OF LOW GRADE ORE
266. Ms. MAHUA MOITRA :
Will the Minister of STEEL be pleased to state:
(a) whether it is a fact that in country iron ore mining does not recover low grade ore
(below 62% Fe) and is disposed in the tailing or stockpiled- leading to waste of precious
natural resource, as other countries like Brazil, China etc. have process plants to
recover low grade ore as low as 42% Fe which is converted into pellets for blast furnace
for conversion to steel, if so, the details thereof;
(b) the details of steps that the Government is planning, if any, to recover low grade
ore which is saleable in the industry; and
(c) whether PSU’s are Going to be incentivised to do this or will private players be
allowed to do merchant mining in order to monetise low grade ore?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(c): At present, steel is a deregulated sector and the steel companies take
decision to beneficiate and utilize low grade iron ore and other raw materials according
to their techno-economic considerations, in the processing plants available in the
country. Many iron ore miners have facilities to recover and beneficiate lower grade of
iron ore.
As per MMDR Act, 1957 (amended in 2021), captive miners including private players
have been allowed to sell up to 50% of minerals produced during the year after meeting the
requirements as per the MMDR Act.
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