Iron ores are rocks and minerals from which metallic iron can be extracted economically.

The term “iron

ore” is typically reserved for a rock containing more than ~35 wt%. iron. It occurs in various geological
formations but major economic deposits are found in volcano-sedimentary Banded Iron Formation (BIF)
from the Precambrian age.
Based on the amount of ore and iron content, iron ore is classified into various types:
 Hematite
It is also known as red ochre for its distinct red colour. Hematite is the best quality iron ore containing almost
60-70% of iron content. Along with being the best quality iron ore, hematite is also the main iron ore of
India. These iron ores are large and lumpy with an extremely rugged surface. This variety of iron ore is mainly
found in the Cuddapah and Dharwad rocks.
Hematite comes in different varieties like micaceous hematite, laminated hematite, hematite quartz-schist, and
hematite-breccia and are mostly located in the states of Orissa, Bihar, Jharkhand, Chhattisgarh, Madhya
Pradesh, Maharashtra, Karnataka, Andhra Pradesh, and Goa.
 Magnetite
Also referred to as black ore, this is one of the most common type of iron ore in India. It is the most important
and best kind of iron ore. It contains about 72% metallic iron in it. It is found in Karnataka, Andhra Pradesh,
Rajasthan, Tamil Nadu, Goa and Kerala.
This ore contains magnetic properties and it comes in a 3-D crystal structure
 Limonite
limonite has a ferrous concentration of almost 35% to 50%. These iron-ore oxides are yellowish to yellowish-
brown in colour and are generated from the weathering of iron-containing rocks. They are also found as
sediments in shallow marine areas, bogs, or even lakes. It is a primary form of iron in lateritic soils and is
often used as a colouring agent too.
The distribution of iron ore in India of the limonite variant, it can be found in the Garhwal and Mirzapur
districts of Uttar Pradesh, the Raniganj coalfield, and the Kangra Valley of Himachal Pradesh.
 Siderite
Siderite iron ore is often known as iron carbon. It has 10% to 48% iron content and is brown in colour. It is
low-grade iron ore. It is self-fluxing due to the presence of lime.
Type of Iron Ore Iron Content (%) Color

Hematite 60–70% Red

Magnetite ~72% Black

Limonite 35–50% Yellowish to yellowish-brown

Siderite 10–48% Brown

India is self-sufficient in iron ore production. It contributes 7% to global production. India ranks as the 4th
largest producer of iron ore globally after Australia, Brazil, and China. India is the 2nd largest producer of
steel in the world after China. India has some of the largest iron ore reserves in the world. India’s iron ore
production value in 2022 is estimated to be approximately INR 869 billion, which is more than double the
value in 2021.
There are 1319 reporting mines. Of these, 97 percent mines are located in seven states, namely Odisha,
Chhattisgarh, Rajasthan, Karnataka, Jharkhand, Madhya Pradesh and Maharashtra. India’s leading
state that produces iron ore is Odisha. It accounts for more than 55% of the total production followed
by Chhattisgarh producing almost 17%, this is followed by Karnataka and Jharkhand producing 14% and 11%
respectively. Haematite and magnetite are the most important iron ores in India. About 79% haematite ore
deposits are found in the Eastern Sector and 93% magnetite ore deposits occur in the Southern Sector.

Export of iron ore from India

 India is the fifth largest exporter of iron ore in the world.
 About 50 to 60 percent of our total iron ore production to countries like Japan, Korea, European
countries, and lately to Gulf countries.
 Japan is the biggest buyer of Indian iron ore accounting for about three-fourths of our total exports.
 Major ports handling iron ore export are Vishakhapatnam, Paradip, Marmagao, and Mangalore.

Major Iron Ore Belts in India

 Orissa-Jharkhand Belt
o In Orissa high-grade hematite ore is found in Badampahar mines in the Mayurbhanj and
Keonjhar districts.
o In the Singhbhum district of Jharkhand haematite iron ore is mined in Gua and Noamundi.
o Jharkhand has some of the oldest iron ore mines and most of the iron and steel plants.
 Durg-Bastar-Chandrapur Belt
o It lies in Chhattisgarh and Maharashtra. Very high grade hematites are found in
the Bailadila range of hills in the Bastar district of Chhattisgarh.
o The range of hills comprises 14 deposits of super high-grade hematite iron ore. It has the
best physical properties needed for steel making.
o Iron ore from these mines is exported to Japan and South Korea via Vishakapatnam port.
o Dalli, and Rajhara in Durg are also the important mines of iron ore.
 Bellary-Chitradurga-Chikmagalur-Tumkur Belt
o The Kudermukh mines, one of the largest deposits in the world located in the Western Ghats
of Karnataka.
o The ore is transported as slurry through a pipeline to a port near Mangalore.
 Maharashtra-Goa Belt
 o Includes the state of Goa and Ratnagiri district of Maharashtra.

Iron Ore Distribution and Reserves

About 95% of total reserves of iron ore is found in the States of Odisha, Jharkhand, Chhattisgarh,
Karnataka, Goa, Telangana, Andhra Pradesh, and Tamil Nadu.
Karnataka:
• Chikmagalur District:
• It has high-grade iron ore deposits in Kemmangundi in Baba Budan Hills (supply to Bhdravati Steel Plant)
and low-grade
deposits in Kudremukh Hills.
• Kudremukh iron ore is mined on a large scale for export from New Mangalore port.
• Bellary-Hospet area and Sandur Ranges have deposits of high-grade iron ore (supply to Vijaynagar steel
plant at Hospet).
• Other mining areas in Karnataka are Chitradurga, Uttar Kannad, Shimaga, Dharwad, Tumkur,
Kumaraswamy, and Ramandurg.
• Donimalai Iron Ore Mine:
• It is located in Bellary region and produces 4 million tonnes of Run of Mine ore per year with an average
grade of 65% Iron.
• Iron ore is exported through Chennai outer harbor in Tamil Nadu and
Marmagao Port in Goa.
National Mineral Development
Corporation (NMDC) mines iron ore in Donimalai.
• NMDC stopped its operation due to the state government imposing an 80% premium on iron ore sales, but
the lease has been extended for the next 20 years and NMDC is resuming its operations.

Orissa:
• The ores in Orissa are rich in Hematite.
• India's richest Hematite deposits are located in Barabil-Koira Valley. This valley lies in Keonjhar and
adjoining Sundergarh district.
• The most important deposits occur in:
• Keonjhar
• Sundargarh
• Mayurbhanj
• Koraput
• Cuttack
• Sambalpur
Chhattisgarh:
• Chhattisgarh has 18% of India's total iron ore reserves.
• Iron ores are widely distributed, with prominent deposits in Bastar and Durg districts. Bailadila mine in
Bastar district is the largest mechanized mine in Asia and produces high-grade ore.
• Dalli-Rajhara range in Durg district has significant iron ore reserves with a ferrous content of 68 to 69
percent.
• A 270 km long slurry pipeline is being constructed to bring ore from Balladila to Vizag plant for smelting.
• High-grade ore from Balladila is exported through Vishakhapatnam to Japan and other countries where it is
in great demand.

GOa:
• Iron ore production in Goa is a recent development.
• Goa produces over 18 percent of the total production of India.
• Nearly 315 mines are located in North Goa, Central God, and South Goa.
• The richest ore deposits are located in North Goa.
• River transport (through river Mandovi and Zuari connect through Cumberjua canal) or ropeways are used
for local transport and Marmagao port for exporting the ore.
• Most of Goa's iron ore is exported to Japan.

Jharkhand:
• Jharkhand accounts for 25% of the
country's reserves and over 14% of total iron ore production.
• Iron ore mining began in the Singhbhum district in 1904, which was then a part of Bihar.
• Singhbhum's iron ore is of the highest quality and will last for hundreds of years.
• The main iron-bearing belt forms a range of about 50 km from Gua to Pantha in Bonai, Orissa.
• Other deposits in Singhbhum include those of Budhu Buru, Kotamati Burn, and Rajori Buru.
• The Noamandi mines are situated at
Kotamati Buru and are well-known.
• Magnetite ores occur near Daltenganj in the Palamu district.
• Less important magnetite deposits have been found in Santhal Parganas, Hazaribagh, Dhanbad, and Ranchi
districts.

Other States:
• Apart from the major producing states described above, iron ore in small quantities is produced in some other
states also. They include :
• Andhra Pradesh (1.02%): Kumool, Guntur, Cuddapah, Ananthapur, Khammam, Nellore
• Maharashtra (0.88%): Chandrapur, Ratnagiri, and Sindhudurg
• Madhya Pradesh (0.66%)
• Tamil Nadu: Salem, North Arcot Ambedkar, Tiruchirapalli, Coimbatore, Madurai, Nellai Kattabomman
(Tirunelveli)
• Rajasthan: Jaipur, Udaipur, Alwar, Sikar, Bundi, Bhilwara
• Uttar Pradesh: Mirzapur
• Uttaranchal: Garhwal, Almora, Nainital
• Himachal Pradesh: Kangra and Mandi
• Haryana: Mahendragarh
• West Bengal: Burdwan, Birbhum,
Darjeeling
• Jammu and Kashmir: Udhampur and
Jammu
• Gujarat: Bhavnagar, Junagadh, Vadodara
• Kerala: Kozhikode.
Challenges Faced By India’s Iron Ore Sector
 Sustainability: Strict environmental regulations, especially related to deforestation, air and water
pollution, and land degradation, can lead to operational challenges and increased compliance costs.
 Fairness: Iron ore is classified into different categories based on its ‘Fe’ content and there is a
possibility of misrepresenting high-grade iron ore to reduce the average sale price (ASP)
determined by IBM, giving rise to an unfair advantage that genuine firms would not have obtained.
 Viability: The effective tax rates and the royalty payments for iron ore in India are much higher
than in most mineral-rich countries, namely Brazil, Australia, Canada, Chile, and South Africa. This
results in an increase in cost, which has a pass through effect in steel pricing.
 Regulatory Issues: Changing regulatory frameworks and policies related to mining and exports
have created uncertainties for stakeholders in the iron ore sector, impacting investment decisions and
long-term planning.
o For eg- The Shah Commission report on illegal mining and subsequent Supreme
Court rulings had put a hold on mining activity, particularly in Goa and Telangana.
 Infrastructure Constraints: Inadequate infrastructure, including transportation and logistics,
hampers the efficient movement of iron ore from mining sites to ports or steel plants. This results
in delays, increased costs, and a less competitive position in the global market.
 Illegal Mining and Smuggling: Illegal mining is a major concern leading to revenue loss, and creates
a huge unorganised sector characterised by information asymmetry, preventing legitimate
players from entering the sector.

Way Forward
 Stable Regulatory Framework: Establish a stable and transparent regulatory framework for the
iron ore sector to provide clarity and encourage long-term investments. Consistency in policies will
enhance investor confidence.
o The reforms introduced through the Mines and Minerals (Development and Regulation)
Amendment act of 2021 are aimed to benefit the iron ore sector.
 Discourage Iron ore Export: The export of iron ore should not be encouraged as it is not a renewable
material. As the country transitions to Aatmanirbhar Bharat, India should prioritise the export of
higher value-added products, such as finished steel.
 Environmental Sustainability: Implement and enforce stringent environmental standards to
ensure responsible mining practices. Promote eco-friendly technologies and reclamation efforts to
minimise the sector’s ecological footprint.
 Combat Illegal Mining: Strengthen law enforcement and monitoring mechanisms to curb illegal
mining and smuggling activities. For instance, state governments have enacted rules for preventing
theft, smuggling, and illegal mining.
 o Orissa Minerals (Prevention of Theft, Smuggling & Illegal Mining and Regulation of
Possession, Storage, Trading and Transportation) Rules, 2007.
o Jharkhand Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2017.
o Karnataka (Prevention of Illegal Mining Transportation and Storage) Rules, 2011.
 Infrastructure Development: Invest in upgrading transportation and logistics infrastructure to
streamline the movement of iron ore from mines to ports or steel plants.
 Regularise e- Auctions: To address the bottleneck in availability of iron ore under e-auction process,
the report recommended that e-auctions could be held weekly or bi-weekly, as per the business
requirements of the firms.

Captive Mines
 Captive mines are the mines that are owned by companies.
 The coal or mineral produced from these mines is for the exclusive use of the owner company of the
mines.

 Captive Mines: According to the report, allocation of captive mines to some players creates entry
barriers in the iron ore and steel sector as entry and successful operation becomes costly for new
firms. It emphasised on monitoring the prices charged when a captive mine sells its surplus input
to other entities.

Conclusion
India possesses vast iron ore resources that are crucial for its steel industry and economic growth. To ensure
sustainable development, it is essential to balance efficient resource utilization with environmental protection,
infrastructure upgrades, and transparent regulatory practices.