Iron ore stockpile at mine heads could hurt production post auctions

Inventory at pit-heads of mines lapsing by next March end largely has lower grade fines with Fe content of up to 62%, which has no takers in domestic market

The huge inventory of iron ore at pit-heads of mines lapsing by March 31, 2020 is going to pose a hurdle to new miners who acquire them after auctions.

The stockpile of iron ore has mounted to 163 million tonnes (mt) across mines in the country. Odisha and Jharkhand combined together account for 137 mt of the accumulated ore. The inventory has a preponderance of lower grade fines with iron (Fe) content of up to 62 per cent for which there are no takers in the domestic market. Nationwide, 329 mining leases have their leases ceasing by March 2020. But only