Indian government urged to review iron ore, coal mining policy
In an effort to bring relief to the Indian steel industry, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) requested that the government review the country's iron ore and coal mining policy. ASSOCHAM discloses in its “Policy Prescription for the Mining Sector” that coking coal demand in India is expected to increase from the current 30 million tons to 80 million tons by 2020. Moreover, the paper indicates that India currently produces approximately 120 million tons of iron ore and that more than 50 percent of good quality ore is exported. Due to the exports, domestic demand is never met. This causes prices of products such as steel to escalate. ASSOCHAM demands that the government provide mining companies with certain incentives so that iron ore availability in the domestic market increases. For instance, the association wants the government to encourage domestic companies to develop further sources of good quality iron ore and coking coal. It is hoped that this would lead to an increase in availability and therefore a reduction in prices. ASSOCHAM claims in its paper that domestic availability, not exports, should be the government's priority when it comes to making mining policy.