The Iron Ore Industry in India
03.06.2025
The Iron Ore Industry in India
Context
In May 2025, India witnessed an 89% surge in iron ore production and sales, highlighting a strong industrial rebound and increasing infrastructure demands.
About the News
- NMDC ( National Mineral Development Corporation ) reported an 89% rise in production in May 2025.
- This growth reflects revived domestic demand and policy support.
- India now has 1319 active iron ore mines across key states.
- Odisha remains the top-producing state of iron ore in India.
- India is home to the extraction of 87 different metallic and non-metallic minerals, with the mining sector contributing around 2.3% to the country’s Gross Domestic Product (GDP) during the financial year 2022–23.
Characteristics
- Iron ore is a key raw material for steel production.
- Found in lumps, fines, and pellets with varying iron content.
- Magnetite has ~70% Fe, the highest quality ore.
- India is the second-largest producer of Hematite after Russia.
- Major belts: Odisha-Jharkhand, Karnataka, Chhattisgarh, Goa-Maharashtra.
- India exports to China, Japan, South Korea depending on demand.
Types of Iron
|
Type of Iron Ore |
Chemical Formula |
Colour/Appearance |
Iron Content |
Remarks |
|
Magnetite |
Fe₃O₄ |
Black, magnetic |
Up to 70% |
Highest iron content; excellent quality ore |
|
Hematite |
Fe₂O₃ |
Reddish to brown |
60%–67% |
Widely used in iron production |
|
Limonite |
Hydrated iron oxide |
Yellow-brown, earthy |
40%–60% |
Lower grade; less efficient for extraction |
|
Siderite |
FeCO₃ |
Grey or brownish |
Less than 40% |
Contains impurities; often not mined commercially |
Challenges
- Environmental damage due to deforestation, e.g., in Goa mining areas.
- Regulatory delays like forest clearances in Jharkhand.
- Price fluctuations due to global demand shifts, e.g., China slowdown.
- Logistics issues, especially in remote mining regions of Chhattisgarh.
Way Forward :
- Promote eco-friendly mining, like afforestation in Odisha.
- Use AI-based exploration to identify new reserves, e.g., by GSI.
- Improve rail-road connectivity from mines to ports, e.g., Dedicated Freight Corridors.
- Encourage public-private mining ventures, e.g., JSW in Karnataka.
Conclusion
India’s iron ore sector is vital for economic growth and industrial self-reliance. With sustainable practices and efficient governance, it can support long-term infrastructure and export goals.