24 SEP, 2012, MEERA MOHANTY, ET BUREAU
NEW DELHI: The central government has banned states from allowing sale or export of iron ore by companies granted mining leases for own steel production. "The entire ore produced in the mining operation (of captive mines) shall be used exclusively for own consumption in iron or steel making and cannot be either sold in India or exported to other countries," the mines ministry said in an order issued on September 19, invoking Rule 27 (3) of the Mineral Concession Rules 1960.
The move comes after the Jharkhand government allowed one time sale of iron ore fines by Usha Martin and Steel Authority of India last year in a controversial move. The two are among six captive mining leases granted to steel makers in Jharkhand, where there are 40 iron ore miners.
Indian steel makers traditionally use iron ore lumps from mines, leaving out ore fines smaller than 10 mm. As mines grow older, only about 30% of their outputs are lumps with fines comprising the rest.
One way of using iron ore fines is removing moisture, beneficiating the ore and baking it into tight balls or pellets, which are easier to transport and less polluting. Pellets are a more efficient feed in steel making than fines and help reduce coal requirement. Although most steelmakers can use pellet feeds, only a few domestic steel makers have facilities to make pellets.
Jharkhand in August last year had relaxed a ban on exports of iron ore from captive mines to allow Usha Martin and SAIL sell nearly 20 million tonnes of ore fines through a one-time domestic sale. It led to much uproar in the state despite a safeguard clause that required the sale to prioritise Jharkhand-based industries. In February this year, the High Court in Ranchi stayed the order, saying only the Centre was empowered to issue such notifications, amend laws or introduce rules under the Mines and Minerals (Development and Regulation) Act.
NEW DELHI: The central government has banned states from allowing sale or export of iron ore by companies granted mining leases for own steel production. "The entire ore produced in the mining operation (of captive mines) shall be used exclusively for own consumption in iron or steel making and cannot be either sold in India or exported to other countries," the mines ministry said in an order issued on September 19, invoking Rule 27 (3) of the Mineral Concession Rules 1960.
The move comes after the Jharkhand government allowed one time sale of iron ore fines by Usha Martin and Steel Authority of India last year in a controversial move. The two are among six captive mining leases granted to steel makers in Jharkhand, where there are 40 iron ore miners.
Indian steel makers traditionally use iron ore lumps from mines, leaving out ore fines smaller than 10 mm. As mines grow older, only about 30% of their outputs are lumps with fines comprising the rest.
One way of using iron ore fines is removing moisture, beneficiating the ore and baking it into tight balls or pellets, which are easier to transport and less polluting. Pellets are a more efficient feed in steel making than fines and help reduce coal requirement. Although most steelmakers can use pellet feeds, only a few domestic steel makers have facilities to make pellets.
Jharkhand in August last year had relaxed a ban on exports of iron ore from captive mines to allow Usha Martin and SAIL sell nearly 20 million tonnes of ore fines through a one-time domestic sale. It led to much uproar in the state despite a safeguard clause that required the sale to prioritise Jharkhand-based industries. In February this year, the High Court in Ranchi stayed the order, saying only the Centre was empowered to issue such notifications, amend laws or introduce rules under the Mines and Minerals (Development and Regulation) Act.
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