National Mineral Policy 2006 - Department of Mines

ound prospecting and environmental and bio-diversity preservation. Suchprofessional mining enterprises, whether in the public or private sector, must in thefirst instance allocate a certain minimum proportion of production (say 70%) tocater to the needs of domestic users, i.e. the large number of dispersed mini blastfurnaces, direct reduction plants, or combination plants. As an incentive and also inorder to maintain strategic interlocking with the world iron ore market on a sustainedbasis, such professional mining companies need to be permitted to export theremaining 30% percent of production in all permissible grades as per Governmentpolicy from time to time.(ii) While many countries in the world are using low grade iron ore through complex andsophisticated beneficiation technology; in India iron ore beneficiation has remainedlargely a peripheral activity—except Goa, where several mining enterprises areundertaking significant and systematic beneficiation by 2–4% of Fe. Elsewhere, theexisting beneficiation plants for Haematite ore upgrade the iron content by onlyaround 1.5–2% through simple washing techniques.(iii) In order to promote a paradigm shift into higher levels of upgradation of leanHaematite ores and for reclamation of the large dumps of mixed and unclassifiedlower grade iron ore/waste material at Gua and other old mines; by more sophisticatedand complex ore-specific beneficiation techniques for strategic long termconservation and prolongation of the life of Indian iron ore reserves, specialpreference is proposed to be given to attract any world class professional miningcompany with proven track record to develop major deposits of low gradeHaematite ores, say below Fe 58% and reclaim dumps, for supply todomestic/export market after high end beneficiation with latest world classtechnology. This will motivate and help indigenous mining companies also toimprove and expand use of sophisticated beneficiation technologies.243