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India will boost iron ore enrichment for the requirements of the steel industry and its shift to environmentally friendly steel manufacturing. The country's steel output is expected to surge 40–47% by 2023–2024 to 200–210 million tonnes by the fiscal year 2029–2030.
Both the production of iron ore and domestic consumption will increase sharply as a result of this rapid growth. By FY2029/2030, the production of iron ore is projected to increase over 390 million tonnes. However, the availability of raw materials with a more iron content remains a question mark.
In FY2023/2024, India’s supply of iron ore with an iron content above 65% decreased by 20% y/y – to 32 million tonnes. The supply of iron ore with an iron content of 62-65% has increased markedly, but only after a period of sharp decline over the past few fiscal years.
In contrast, the country’s production of iron ore with an iron content below 58% increased from 17.08 million tonnes in FY2018/2019 to almost 54 million tonnes in FY2021/2022, and has remained at about the same level since then.
This poses serious challenges for the production of high quality steel grades and the development of the iron-dependent direct reduced iron (DRI) IF-EAF route, as well as the use of domestic raw material reserves to support the rapidly expanding steel industry.
As India’s DRI capacity grows, the rapid deterioration in the quality of domestic iron ore is a serious problem, and enrichment is the need of the hour for the country.
India’s iron ore enrichment capacity is likely to increase to 143 million tonnes in FY2024/2025 and 170 million tonnes by FY2029/2030 from the current 136 million tonnes. The largest share of this capacity is currently in Odisha (almost 35% of the country’s total capacity).
The Indian government is developing a policy to enrich low-grade iron ore in order to increase steel production by making the best use of local raw materials. According to reports, the relevant ministry will soon finalise this work.
India increased iron ore production to a historic high of 282 million tonnes in 2023, up almost 14% year-on-year. In particular, miners increased volumes due to stimulated demand from rising steel production in the country, and export potential increased.
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