Steelmakers fear iron ore supply disruption once leases expire next March

Industry says transition from existing to new lessee is not going to be as easy as anticipated

Steel producers are staring at a bleak future in iron ore supplies after the lease tenures of merchant mines lapse on March 31, 2020.

Steel manufacturers, especially those without captive leases, fear supply disruptions in ore for 24 to 36 months following the expiry of non-captive mine leases. Since they depend on merchant supplies, the expiry of the leases would shut off 66 per cent of market supplies of iron ore.

“The supply disruption in iron ore is inevitable as the transition from existing to new lessee is not going to be as easy as anticipated. Besides environment clearance (EC) and forest