National Mineral Policy 2006 - Department of Mines

Most magnetite findings are entirely incidental and since, unlike haematite, magnetite doesnot occur with specified groups of rocks, not even an estimate is available. It has been arguedbefore the Committee that India’s current resource estimates were based on a 50 metre (Max)Type-II series horizon. With the advent of satellite imagery, aero-magnetic data techniques,modern core-drilling methodology, a Type-I + Type-II series horizon of up to 500 metres andtaking into account beneficiation potential of low grades, the resources can rise up to 40–50billion tonnes, matching that of Australia and Brazil.7.30 In the UNFC system, the cut-off grade for estimating haematite resources has beentaken as 55 per cent Fe component and above. If the cut-off grade is reduced to say 45 percent Fe, the iron ore resources will increase. With the modern beneficiation technology usedfor improving the quality of magnetite ore, it should also be possible to utilise haematite ironore of 45 per cent Fe and above through beneficiation. Therefore, the resources would behigher than shown above.7.31 At this point, we may also deal with the issue of magnetite vs. haematite. Asmentioned above, the main distinguishing feature of magnetite ore is that the Fe content islow. Most of China’s huge reserves are magnetite and the average Fe content is only 35 percent. Yet China uses all its magnetite ore by beneficiating it to the grade required for makingsteel. The cost of beneficiated magnetite ore locally produced in China is not too far abovethe cost of imported haematite iron ore from Brazil, Australia, and India. Instead of persistingwith existing technologies and depending on haematite ore, the Indian steel industry of thefuture is likely to recognise the vast potential for magnetite in the country and make thenecessary adjustment in the production processes. Besides, only about 20 per cent of thecountry’s hard rock area is under forest cover and in any case, the SDF proposed in Chapter 3should make it possible to overcome the problem of extracting iron ore from areas underforest cover.7.32 The Committee recognised that all 23.58 billion tonnes of resources may not turn outto be mineable, but it took into account the fact that with exploration, particularly explorationon the basis of improved techniques, which would become available in India once thesuggested changes in the law and policy is carried out, the resources would increase. Theresource estimates would also increase for haematite if the Fe content cut-off is lowered from55 per cent to 45 per cent. For the present, it would be quite safe to take 23.58 billion tonnes152