Vedanta. File
| Photo Credit: Reuters
Vedanta’s iron ore mining arm, Sesa Goa, has urged the government to provide incentives for low-grade iron ore beneficiation, emphasising that targeted policy support and infrastructure investment are critical to make the processing economically viable and to expand the sector.
The low-grade iron ore beneficiation process enhances the iron content of low-quality ores by removing impurities like silica, alumina, and phosphorus, thereby making them suitable for steel production.
With the country’s steel demand projected to reach 300 million tonnes by 2030, unlocking low-grade reserves through beneficiation could boost domestic supply security, create jobs, and add billions to government revenues via expanded mining and exports.
Currently, higher-grade ore meets domestic needs, but low-grade stockpiles offer untapped potential, provided policy hurdles like duties and regulatory delays are eased.
“India sits on massive low-grade iron ore inventory – estimated at over 300 million tonnes at mine heads – that remains underutilised due to high upfront costs for beneficiation plants and supporting infrastructure,” said Sesa Goa CEO Navin Jaju during an interaction.
Stressing the requirement for long-term investment to upgrade low-grade ore into higher-grade feedstock for domestic steel production, Mr. Jaju said, “There is a very urgent need to bring some kind of beneficial duty structure or incentive structure to beneficiate this material.”
Mr. Jaju argued against export duties on low-grade ore, adding that “Export duty by far India does not need it… We have abundance of material.”
He advocated for free pricing to encourage sector growth, noting that proper evacuation infrastructure would enable exports while prioritising domestic beneficiation.
The issue is a regular agenda item in industry ecosystems and associations, with calls for tax credits, subsidised financing, and relaxed policies to accelerate projects.
Steel majors, reliant on consistent ore supply amid global price volatility, see this as pivotal for Atmanirbhar Bharat in metals.
India produced 289 million tonnes of iron ore in FY25, with exports hitting record highs, but beneficiation capacity lags at under 20 per cent of the potential. He urged a time-bound framework in the upcoming Union Budget to incentivise beneficiation, potentially transforming low-grade waste into a strategic asset.
Published – January 25, 2026 11:26 am IST
