New Delhi, 14 April (H.S.):

The Central Government has notified important amendments to the Mineral Concession Rules, revising the pricing norms for low‑grade iron ore and providing a structured framework for the assessment of average selling price (ASP) for such ores, including Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ). The changes are part of the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession (Third Amendment) Rules, 2026, notified by the Ministry of Mines on April 10, 2026.

Under the amended rules, the Ministry of Mines has introduced a dedicated methodology for publishing the average selling price (ASP) of haematite iron ore with iron (Fe) content below the threshold of 45 per cent, which also covers BHQ and BHJ. The objective of this reform is to curb wastage, encourage the use of such low‑grade reserves, and ensure a stable supply of raw material to the steel industry, thereby enhancing mineral conservation and industrial efficiency.

The Ministry explained that the amendments provide a pricing framework for iron ore with less than 45 per cent Fe content, where BHQ and BHJ fall under “low‑grade” pre‑Cambrian iron‑bearing rocks often classified as lower‑grade ore.

Under the revised norms, the

ASP for iron ore with 35–45 per cent Fe content will be fixed at 75 per cent of the ASP of higher‑grade ore (45–51 per cent Fe), while ore with less than 35 per cent Fe content will be priced at 50 per cent of that same benchmark standard.

The Ministry noted that, prior to this amendment, there was no separate pricing mechanism for low‑grade ores, and the ASP of higher‑grade ore (45–51 per cent Fe) was being used to determine royalty and other levies, which made the beneficiation of low‑grade ore economically unviable. The new rules, the Ministry said, are necessary to establish a dedicated policy framework for the beneficiation of low‑grade ore, opening the door to its wider utilisation.

By bringing low‑grade iron‑ore resources into the usable category, the Government expects to reduce the depletion pressure on higher‑grade iron‑ore reserves, ensure a steady mineral supply for the steel industry, and promote scientific and optimal mining of iron‑ore resources.

The Ministry added that using lower‑grade iron‑ore resources will serve the broader interest of mineral conservation, foster optimal, data‑driven extraction, and help India remain self‑reliant in iron ore, reducing the need for external imports in the long term.

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Hindusthan Samachar / Jun Sarkar