Iron ore reserves rise

Steel industry fears of the mineral depletion laid to rest.

The ongoing tussle between the steel industry and mining firms over curbs on iron ore exports has taken a new turn with the Indian Bureau of Mines (IBM) revealing that high-grade iron ore resources (haematite) have increased by 533 million tonnes in the country between 2000 and 2005 (a period that witnessed boom in Indian iron ore).

Contrary to the steel industry's claim that high-grade iron ore resources are depleting in the country due to extensive mining and exports, the Federation of Indian Mineral Industries (FIMI) has been contending that intensive mining would lead to the discovery of new resources and deposits. Their contention is now supported by the IBM figures.

According to the IBM, 215 million tonnes of high-grade (containing ferrous content in excess of 65 per cent) iron ore lumps and fines were produced between 2000 and 2005. However, during the same period, the total high-grade iron ore resources in the country went up by 533 million tonnes to touch 1,933 million tonnes from 1,400 million tonnes.

Despite having mined 215 million tonnes of high"�grade iron ore with an average 43 million tonnes per year (between 2000 and 2005), an addition of 107 million tonnes per year has been made to the total resources. High-grade iron ore constituted 13.21 per cent of the total resources by the end of 2005 as against 12.25 per cent as on 2000.

"It proves that there is no scarcity of high-grade iron ore resources in India. The market demand for iron ore always leads to intensive mining, detailed exploration and discovery of more resources as has happened in the last five years," said FIMI Secretary General R K Sharma.

The FIMI has sent the IBM's figures to the Ministry of Steel after the Group of Ministers' meeting expressed concern over high-grade iron ore (haematite) resources in the country.

This had prompted the government to impose a Rs 300 per tonne duty on exports of high-grade iron ore. Iron ore exports fell by 33 per cent after the duty was imposed.

According to the FIMI, exploration of iron ore resources has to be carried out to ascertain the accuracy. "Regional exploration of iron ore resources was carried out by the Geological Survey of India in 1980. Thereafter, only the lease-hold areas have been explored depending on the market demand. A fresh exploration will lead to discovery of more resources," Sharma stated.