The Indian government is working on a proposal to reduce the royalty rate from 15% to 5% for low-grade iron ore (below 58% Fe) that is beneficiated to 62% Fe by domestic steel producers, according to government sources.
The policy aims to incentivize the beneficiation of lower-grade ores, improving resource efficiency and reducing waste. The recommendation originated from the Parliamentary Standing Committee on Steel and Coal, which emphasized that the incentive would:
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Conserve high-grade iron ore reserves,
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Promote utilization of mining rejects, and
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Reduce the environmental burden associated with tailings and waste storage.
If implemented, the measure would support India’s long-term goal of optimizing its iron ore resource base while strengthening domestic steelmaking competitiveness.
VietnamSteel by Hoa Sen Group
