India may allow the development of previously closed iron ore deposits

Iron ore deficiency experienced by India metallurgical companies can push the government to remove the ban on several mines of SESA STERLITE LTD controlled by billionaire Anil Agarwal. This was announced today by Bloomberg.

Thus, the next month, the extraction of iron ore raw materials, stopped two years ago at the request of ecologists, may begin.

The resumption of production can fill the lack of iron ore, which is faced with local steel manufacturers, including JSW Steel (JSTL) LLC, the third largest manufacturer in the country.

The potential income of Sesa Sterlite can amount to more than $ 300 million based on today's prices for ore. The company has already received permission from the Ministry of Environmental Protection and works with the agency of the Karnatak government to get the final permit. As soon as it is obtained, 17 quarries with a total capacity of 15 million tons of iron ore per year will enter the system.

Meanwhile, the deficiency of iron ore raw materials in India is currently estimated at the level of 30 million tons, and given the plans for the doubling of steel production by 2025, the need for metallurgists will only increase.