Govt asks major steel players to use iron ore fines also for steel making

In order to increase the utilisation of available raw material, the Steel Ministry has directed integrated steel players to use iron ore cuttings in steel production after upgrading it. According to sources, the ministry has also suggested that players look at options such as acquiring coking coal mines abroad. This is aimed at increasing the availability of raw material at competitive prices, they said. "They have been told that iron reserves are limited in the country and to preserve that, players should also use low-grade ore through the upgrading process. They can also look for coking coal mines outside India," the sources said. Iron ore and coking coal are the two major raw materials used for steel production through the blast furnace route. While iron ore is available in abundance, India remains heavily dependent on imports for coking coal. Major players use only high-grade ore (lumps), with iron content of 65% and above, to make steel through BF (blast furnace). Cuttings are low-grade ores with an iron content of 64% or less. Using low-grade ores increases the total cost of production.