Reserves and Resources of Iron Ores of India – A Perspective

Abstract

With a total resource of 22,487 million tonnes of haematite (Fe₂O₃) and 10,789 million tonnes of magnetite (Fe₃O₄), India ranks seventh among the countries to possess abundant iron ore resources, in the world. India is not only one of the leading producers of iron ore but also at present second largest manufacturer of steel in the world (2021). Though the country can boast of huge good quality iron ore resources, the percentage of reserves to total resources is quite dismal as only 5,422 million tonnes (24%) of haematite and mere 53 million tonnes (0.49%) of magnetite resources are categorised as reserves as on 1.4.2015 as per UNFC categorisation. It is a matter of great concern that with rapid expansion in the steel manufacturing capacity, there will be unprecedented demand for iron ore for domestic consumption, since it is estimated that by the year 2030 India is likely to produce 300 m.t. of steel to meet the ever-growing domestic demand. Besides, India is likely to continue its iron ore export to keep the structural balance in the international market. In such a situation, can India equip itself to meet the surging demand for iron ore and what should be the strategy for the country not only to augment its iron ore resources but also to enhance its reserve base to a respectable level. This paper attempts to analyse the existing iron ore resources vis-a-vis demand-supply balance of iron ore for the year 2029-30, considering the pros and cons of the existing government policies.