Revamping Iron Ore Pricing to Boost Low-Grade Utilization

The government has revised the pricing norms for low-grade iron ore to curb wastage and enhance resource utilization for the steel industry. The move promotes mineral conservation and aims to make low-grade reserves viable by setting new pricing benchmarks, ensuring a steady supply and addressing high-grade deposit depletion.

In a strategic move to bolster the steel industry, the government has amended rules to revise pricing norms for low-grade iron ore. This initiative aims to reduce wastage and improve the utilization of these reserves, ensuring a continuous supply and addressing the depletion of high-grade deposits.

Announced on April 10, 2026, the new rules under the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2026 provide a methodology for publishing the average sale price (ASP) of Haematite Iron Ore below the threshold value. The framework includes pricing for Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ), which are classified as low-grade, Precambrian iron-bearing rocks.

The amendments establish new ASP benchmarks for iron ore with iron content below 45 percent. This change encourages beneficiation and technological advancements, transforming sub-threshold resources into high-grade feedstock for steel production. This policy shift is anticipated to make lower-grade iron reserves economically viable and sustainable, supporting the long-term supply needs of the steel industry.

(With inputs from agencies.)