Raw Material Security for Indian Steel Industry By : Mr.P.C.Gupta Ex-CMD,NMDC Ltd and Advisor for Mining and Steel Sector

Crude Steel Production Pig Iron for Sale Iron Ore Coking Coal Non-Coking Coal ( for Sponge Iron Sector) PCI Coal Manganese Ore Chromite Ferro Chrome Ferro-Manganese Silico manganese Ferro Silicon Refractories Table:1 Raw material requirement for projected Crude Steel production during 12 th Five Year Plan (Base Case). (Million Tonnes) *Source : working group report on steel industry for the 12 th five year plan * Based on GDP of 9%. May undergo change in the light of further developments in India & the world. On the basis of GDP growth rates of 7.0 & 8.0% (Base case), the cumulative requirement of raw material at the end of the year is shown in the Table-2 up to

Table - 2 Cumulative raw material requirement for projected Iron and Steel production With GDP elasticity of steel demand assumed as 1.14 from the Year to (million Tonnes) to * to to to to %8.0%7.0%8.0%7.0%8.0%7.0%8.0% Crude Steel Production Pig Iron for Sale Iron Ore Coking Coal Non-Coking Coal ( for Sponge Iron Sector) PCI Coal Manganese Ore Ferro-Manganese Silico manganese Ferro Silicon Refractories Note: While calculating requirement of Ferro-manganese, Silico manganese and Manganese ore, crude steel production has been considered only. Ferro and silico manganese towards exports, other uses of manganese in other industries and requirement of ferro-manganese in stainless steel industry has not been considered. Because of vastness of the subject, this paper deals with only iron ore & coal, the two most important raw materials..

Table - 3 Resources of iron ore in India as on million tonnes GradeReserves Remaining Resources Total Resources as on Hematite Magnetite Total (Source: Indian Bureau of Mines, Ministry of Mines)

Table – 4 Production / Consumption / Export of Iron Ore (million tonnes) YearProduction Domestic consumption ExportImport Source: For production and consumption: IBM For Export: MMTC (Department of Commerce). For import: DGCI&S, by Ministry of Steel

Table- 5 Projections for the domestic demand of iron ore during to (million tonnes) GDP Growth rate % Crude Steel Production Total Iron Ore requirement* *Including requirement for merchant pig iron units

Table– 6 Cumulative Iron Ore demand during to GDP Growth rate (%) Cumulative Iron Ore Requirement in Billion Tonnes* Note:* Total Iron ore demand includes actual production of and thereafter projected demand of iron ore as discussed above and also includes demand of iron ore by merchant pig iron units

Table - 7 TRENDS OF PRODUCTION OF WASHED COKING COAL Million tonnes YearWashed Coking Coal productiongrowth Source: Provisional Coal Statistics: , Ministry of coal

Table: -8 Supply of non coking coal to sponge iron units (in million tonnes) YearSupply of non coking coal to sponge iron units Source: Provisional Coal Statistics: , Ministry of Coal

Table-9 Demand for Coking and Non Coking Coal for 12 th Five Year Plan Crude Steel Production Total Coking Coal Demand* Production of Coal based Sponge Iron Total Non-Coking Coal Demand for Coal Based DRI and Corex Plants PCI Coal Demand Note: * Total coking coal demand includes those for merchant pig iron units as well.

Table No – 10 Estimation of demand for Coal during to (million tonnes) GDP Growth rate Crude Steel Production Total Coking Coal demand* Total Non-coking coal demand for for Coal based DRI & Corex plants PCI Coal demand Note:* Total Coking Coal demand includes those for merchant pig iron units as well

Table No – 11 Cumulative Coking & Non-Coking Coal demand for iron and steel industry during to In Billion Tonnes GDP Growth rate (%) Coking Coal Demand * Non coking coal demand for coal based DRI & Corex plants PCI Coal Demand Note:* Total Coking & Non Coking Coal demand includes actual supply of and projected demand of coal from to and also includes demand of merchant pig iron units as well.

Annexure-1 Reserves/Resources of Iron ore (Haematite) As on (P) (By State) StateReservesRemaining Total Resources (in ‘000 tonnes) All India (Total)8,093,5469,788,55117,882,098 AP152,217229,261381,478 Assam012,600 Bihar055 Chhattisgarh900,1102,391,7143,291,824 (3) Goa469,844457,328927,172 Jharkhand2,304,1422,292,4784,596,620 (2) Karnataka876,8661,281,8112,158,678 MP56,814174,632231,446 Maharashtra13,414269,795283,209 Meghalaya0225 Orissa3,313,0002,617,2325,930,232 (1) Rajasthan7,13923,42030,560 UP038,000 Source: IBM

Annexure - 2 Type wise Coal Resources as on Type of Coal Category Total (in Bt) Proved (in Bt) Indicated (in Bt) Inferred (in Bt) Prime Coking Med. Coking Semi Coking Non- Coking Tertiary Coal Total

Annexure 3 Coal Production Trend in India Year Metallurgical CoalTotal Coking CoalNon Coking CoalRaw Coal Productio nGrowth Productio nGrowth Productio nGrowth Productio n (P)