Even as mineral and steel prices have shot through the roof, the new mining policy that was cleared by the Cabinet two weeks ago has stressed more on extensive exploration of minerals while side-stepping the issue of capping export of minerals like iron ore and conserve it within the country.

Briefing reporters on the salient features of the policy, Mines Ministry secretary J P Singh said that China has the capacity to utilise iron ore with iron content as low as 30 per cent and India needs to match that.

“The challenge before us is not of scarcity of ore but proper exploration of it. Our benchmark right now is 55 per cent iron content. We still do not have requisite capacities for beneficiation and if we continue this way, then iron ore will last 140 years,” Singh said. “According to my estimates, if we are able to utilise 45 per cent iron content ore, then the duration will go up to more than 200 years. If we can match China then it will be even more.”

The country produced 181 metric tonne (mt) of iron ore last year of which 50 per cent was exported. Of the exports, 74 per cent was in the form of fines. A further 37 per cent of the ore mined is being used by companies like Tata Steel and Steel Authority of India Ltd (Sail) as captive resources.

Singh also cast aspersions on the steel ministry targets that have recently been revised. “The steel ministry earlier said that 110 mt steel would be produced in the country which was upscaled suddenly to 200 mt. I do not know which one is closer to the truth.”

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