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Captive iron ore mines must for steel industry - JSPL ED

Steel News - Published on Fri, 21 Apr 2017

Image Source: Odisha Sun Times
Odisha Sun Times reported that Mr Manish Kharbanda, Executive Director & Head of Mines & Minerals, Jindal Steel & Power Ltd, while speaking in ‘India Steel 2017’ Conference today at Mumbai said that steel Industry should get priority and ‘must be integrated with captive iron ore mining for sustainable growth.

He stressed on preferential treatment to Steel Industry in mining auction and said that “Auction of Iron ore blocks for merchant mining should be done after the steel plants are equipped with captive mines.”

In auction, most iron and steel plants cannot compete with merchant miners on account of their heavy debt, worsened by low demand and price in the past years.

Speaking on pricing of Iron ore, Kharbanda said that since more than 75% of the Steel plants do not have captive mines and are dependent on merchant miners, the government should take step to make iron ore available at competitive price. The royalty rate of Iron ore is one of the highest in the World and should be reduced. The government should take steps to ensure iron ore prices to be as competitive as possible for steel companies. He said “A price band may be set within which iron prices would be allowed to fluctuate or a cost plus formula may be adopted such that all iron­ ore miners would have to adopt in setting their market selling price.”

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Posted By : Rabi Wangkhem on Fri, 21 Apr 2017
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