Magnesite import set to double soon

The import of high grade magnesite, a key ingredient for lining in refractories, foundries, kilns and blast furnaces, is set to double over the next two years to 230,000 tonnes, with the domestic steel industry planning to scale up production to 60 million tonnes by 2010.

Though the domestic production of magnesite (all grades) in India has been increasing (last fiscal, it was 411,000 tonnes), the country is not in a position to meet the demand from the local steel industry since it prefers the high grade ore. Magnesite is also used in fertilisers and by the food processing industry.

The high grade magnesite, a heat resistant material, is not available in abundance in India. The total proven resources of magnesite in India is 122 million tonnes, spread over Tamil Nadu, Karnataka, Rajasthan and Uttaranchal, according to the Federation of Indian Mineral Industries (FIMI).

The bulk of magnesite deposits (68 million tonnes) consisting of low grade (more than 8 per cent silica) and medium grade (less than 8 per cent silica) are located in Tamil Nadu. However, the high grade magnesite (containing less than 3 per cent silica), which is considered ideal for the steel foundries and refractories, is available in Karnataka in a smaller quantity (128,000 tonnes).

"Indian steel companies and foundries have been importing the high grade magnesite from China, Israel and Ireland. The imports are growing consistently. We expect imports to increase significantly over the next few years as more and more foundries, refractories and kilns are commissioned," S B Chauhan, adviser to FIMI, said.

India is not in a position to meet the demand for magnesite from the domestic steel industry. "Mysore Minerals, a Karnataka government undertaking, is the sole dedicated supplier of the high grade magnesite to the Indian steel industry. The imports continue to account for the bulk," he pointed out.

While the high grade magnesite is priced at Rs 3,000 per tonne, the medium and low grade magnesite is priced at Rs 900 per tonne and Rs 600 per tonne, respectively. "There are five major magnesite mining companies in India. They also cater to domestic foundries by processing magnesite through beneficiation. The scope for expansion is limited since high grade deposits are poor," Chauhan stated.