Iron ore shortage cripples south indian steel industry

Bengaluru : The iron and steel industry is in doldrums in South India, following a severe shortage of iron ore. A large number of sponge iron manufacturers and small steel mills are on the verge of closure. Many of these have already shut shop.

The shortage of iron ore is in the wake of suspension of activities in almost 50 mines in this state following the direction of the Supreme Court, which is hearing a case on illegal mining. Based on the recommendation of the Central Empowered Committee (CEC), out of 99 mining leases, the apex court has ordered the shutting of 40 mines in the Bellary, Hospet and Sandur (BHS) region. For 2011-12, steel, pig iron and sponge iron units collectively require 45 million tonnes (mt) of ore, while the present availability is limited to about 24 mt, which is 48 per cent of the state’s total output. JSW Steel alone requires 27 mt for its plants in Karnataka, Tamil Nadu and Maharashtra.