News Room - Business/Economics

Posted on 28 Nov 2005

Will Indian Iron Ore feed the world?

Capacity expansion has become the most important development priority of India’s steel industry.  Projected capacity of 100 million tonnes in 2012 is staggering.  However, it has the most important ingredient needed: the country is  well endowed with vast iron ore resources.       

Iron Ore Deposits (million tonnes)

	Proven	Probable	Possible	Total
Hematite	6,800	2,122	3,395	12,317
Magnetite	1,770	1,807	1,818	5,395
Total	8,570	3,929	5,213	17,712

The iron ore deposits may be more than enough to support the expansion projects.  The question is whether the country would allow the excess ores to be exported at a substantial volume.    The current policy allows companies for mining only if the mine is in tandem with steel making facilities.  There is also a restriction on export of high grade ore.  To cash in on the soaring iron ore price or to reserve the precious raw material for future expanded domestic steel industry are the choices the country has to decide