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【Ferro-alloys.com】:India's ministry of steel is working on an iron ore beneficiation policy entailing offering incentives for promote higher usage of low-grade ores following beneficiation, steel ministry secretary Nagendra Nath Sinha said in a statement on Monday, May 20.

The secretary said that the policy is being discussed with other related ministries including the ministry for the environment, forests and climate change(MoEFCC) since the idea is to offer incentives for beneficiation of low-grade ores from the budget of the latter since the policy will have a positive contribution to safeguarding the environment.

Some years ago, the ministry of steel had issued draft guidelines mandating beneficiation for 80 percent of low-grade iron ore. It had even recommended penal action, including cancellation of mine licences, if such beneficiation was not carried out.

Now, the ministry is aiming to follow up the guidelines with a firm policy incorporating fiscal incentives for industry stakeholders to adhere to the guidelines, he said.

The use of ore with less iron content needs beneficiation - the process by which impurities are removed - and adds to the cost of steel production, and it is felt that steel companies need to be compensated for such an increase in the cost of production.

• [Editor:Alakay]