The government is considering to increase maximum area for iron ore mining from 25 sq km to 100 sq km to ensure enough supply of raw materials to steel companies, an official in the steel ministry said requesting anonymity.
“A proposal of steel ministry in this regard is being considered by the mines ministry which will be included in the proposed new Mines and Minerals (scientific development and regulation) or MMDR Bill,” he said.
The new legislation will replace the existing MMDR Act and operationalise the National Mineral Policy which has already been announced by the government. The government is likely to place the new legislation for Parliamentary approval during the winter session, the official said.
In its comments steel ministry has suggested that the maximum area for mining iron ore should be linked to other major minerals where 100 sq km of land is provided for mining. It has said that changes is important as major investment is likely in iron and steel making in the country for building infrastructure and present restriction of 25 sq km would be hindrance.
Iron ore is the key raw material used for steel making. While India is surplus in iron ore production at present, various estimates by government and non-government agencies have suggested that this situation may soon turn to deficit if government did not promote scientific mining and identify and preserve ore resources for future use.
“The increase in area for mining iron ore would also remove ambiguity created in present regulations. There are several manganese bearing areas where even iron ore occurs and government gives lease for mining both the minerals. However, area restriction for iron ore also impacts manganese mining,” said a senior official of private sector steel company who also wished not to be identified.
Mining areas in overseas countries are much larger than it is existing in India. Countries like Australia, Brazil are able to extract more iron ore due to scientific mining that is possible on large tracks of mineral bearing land. Area restriction often hampers ore production in India and acts as a disincentive for making investment towards scientific mining.
Source: Economic Times
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