INDIAN IRON ORE MARKET

1. In Jan 2024, the Competition Commission of India (CCI) conducted a study on competition within the iron ore market.
2. Iron ore mainly consists of iron oxides like magnetite and hematite, producing metallic iron (Fe) when heated with a reductant.
3. India shows self-sufficiency in iron ore production, contributing 7% globally and ranking 4th in production.

Concerns Highlighted by CCI

1. Recent years witnessed a rise in iron ore exports, despite its lower value compared to finished products like steel.
2. Allocation of captive mines to specific players creates entry barriers in the market.

• • The Mines and Minerals (Development and Regulation) Amendment Act, 2021, permits captive mines to sell up to 50% of surplus iron ore openly.
  • It also aims to promote ease of doing business and remove restrictions on the end-use of minerals.

1. 3. Differential pricing of iron ore for various end-users may lead to competition issues.

Key Recommendation

• Discourage export: Iron ore, a vital national resource, should be conserved.
  • Prioritize exporting higher value-added products like finished steel to support Atmanirbhar Bharat.
• Upgrade quality: Utilize advanced technologies to enhance low-grade iron ore to higher grades.
• Sustainable mining: Encourage the adoption of clean technology and transition production processes to sustainable mineral production methods.

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