National Steel Policy: Challenges Before Iron Ore Producers

Abstract

The National Steel Policy 2005 estimated domestic steel production of 110 MTPA by the year 2019–2020, which was revised by the National Steel Policy 2008, envisaging domestic steel production of the country to be 180 MTPA by 2019–2020. About 2.5 tonnes of ROM iron ore or 1.7–2.0 tonnes of processed iron ore is required for one tonne of steel production. To meet the projected steel production of 180 MTPA by 2019–2020, the iron ore requirement have to be in the order of 500 MTPA which includes long term projected export contracts of around 100 MT. Raw materials are crucial in determining the competitive growth of steel industry as this is an input-intensive extractive industry. Situation calls for proportionate development expansion in adequate raw material supply to meet the demand of Indian steel Industry. India is almost completely self sufficient with regard to iron ore but with future steel production envisaged, an adverse impact on the reserves, position is rather imminent. The existing reserves of hematite (averaging around 63 % Fe) are the only source of iron ore and as such, these reserves may not last beyond 25–30 years at the present rate of consumption. Hence, to meet the future and projected requirement, additional domestic resources have to be created. The ores and minerals are site specific, non-renewable and finite. It is a challenging task for iron ore producers to meet the demand as per the national steel policy. In order to meet the demand, the iron ore producers has to face challenges like increasing the resource base, increasing production and productivity, utilisation of low grade iron ores, beneficiation of low grade fines and slimes, overcoming the infrastructure bottlenecks like roads, railways, ports, power, capital and water, human resource, handling, storage and utilisation of slimes/tails, encouragement for R&D activities, adopting environmental friendly measures and land acquisition for setting up new plants. In this paper all the above aspects are discussed thoroughly.