New Delhi: The government on Tuesday amended rules to revise pricing norms for low-grade iron ore, aiming to curb wastage, improve utilisation and ensure steady supply to the steel sector.
The Ministry of Mines notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2026 on April 10, introducing a methodology to determine the average sale price (ASP) for iron ore below the threshold grade.
The new framework covers ore with iron (Fe) content below 45 per cent, including Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ), which are typically considered low-grade resources.
Under the revised norms, iron ore with 35–45 per cent Fe content will be priced at 75 per cent of the average sale price of 45–51 per cent grade ore.
For ore below 35 per cent Fe, the ASP will be fixed at 50 per cent of the same benchmark.
The move comes as high-grade iron ore reserves are gradually depleting, prompting the need to tap lower-grade deposits through improved processing and beneficiation technologies.
These advancements have made it possible to upgrade sub-threshold ores into usable feedstock for steel production.
Earlier, the absence of distinct pricing for low-grade ore meant royalties were linked to higher-grade ore prices, making beneficiation economically unviable.
The revised pricing mechanism is expected to correct this imbalance and incentivise scientific mining practices.
The government said bringing low-grade resources into productive use will support mineral conservation, optimise resource utilisation and help maintain India’s self-sufficiency in iron ore, while ensuring consistent raw material availability for the steel industry.