Out of 43 pellet plants in India, 36 plants were closed down in last four months. The concern and suggestion of availability of iron ore fines at affordable price, norms for stacking of iron ore fines, disposal of iron ore fines, royalty double charging resulting in high fines price and E auction of fines from merchant mines have emerged as the best options to be implemented.
The general practice in Iron ore mining is that such mines produces 70 per cent fines and 30 per cent lumps. It has been observed that in case of Odisha mines, looking at the better realisation of lumps in the market, lumps are being sold for the maximum quantity whereas fines are stocked in the mines. Part of such fines is being used in the blast furnace but major chunk is stacked back in mines itself.
“Due to more supply of lumps in the market the demand of pellets has gone down drastically leading to closure of pellet plants. This dumping of fines at mines site not only ecologically affects the environment but also such ill practices are against the laid down principle of scientific mining,” said Ardent Steel ltd director Dr Subhasish Das.
The Ardent Steel has got an ambitious plan to make 1.2 MTPA integrated steel plant (Keonjhar) at the same place and all clearances has been occurred through the State Government.
Dr Das opined that norms should be made such that only 30 days of stock for fines and lumps below Fe (60) will be allowed to be stocked and fines and lumps above Fe (60) will be allowed to be stocked for 10 days. Every month a report should be submitted by the miners with the authorities stating the stock of fines and lumps at site.
The miner should ensure that both lumps and fines are being sold in the market and if market is not supporting such sales due to lower demand then accordingly less mining should be done in consecutive months. This will maintain the balance in the market and is also good for a fare competition.