According to Steel Secretary Nagendra Nath Sinha, the government is developing a program to encourage upgrading of low-grade iron ore, as reported on May 17. The goal of the change is to produce steel using as much ore with low iron content as possible.

The ministry of steel was working with the mines and environment ministry to draw up the policy, Sinha said. "The policy will be come into force in the next three months," Sinha told on the sidelines of a national workshop organised by the ministry on "Forging Sustainability in Steel Sector".

Beneficiation of lower-grade ore involves various processes to increase the iron content and reduce impurities, making it suitable for industrial use. While lump ore or high-grade iron ore contains 65.53% Fe (iron), fines are inferior and have 64% and less Fe content. The use of ore with less iron content needs beneficiation, which adds to the cost of steel production. According to reports, in 2022, the mines ministry recommended steps for beneficiation and upgrade of low-grade iron ore into higher grade ones.

The recommendation said at least 80% of the low-grade ore (with less than 58% iron content) produced annually should be upgraded to higher-grade ore (with 62% iron content). It also proposed fines and potential termination of mine leases if the target is not met. India’s iron ore production stood at 177.06 million tonnes in the April-November 2023 period, of which domestic consumption stood at 135.14 million tonnes, according to the Federation of Mineral Industries.