Raw Materials

IRON ORE

 As per the Survey conducted by the Indian Bureau of Mines (IBM) in April, 1995. India had 10,053 Million tonnes of Recoverable reserves of Heamatites and 3,408 Million Tonnes of Magnetite. While Zone 'A' comprising of Bihar & Orissa is the largest Heamatite Ore bearing Zone in the Country with reserves of 5951 Million Tonnes consisting mainly of Medium Grade & Low Grade Ore (Iron content 65% and below), Madhya pradesh has the largest quantity of High Grade Ore reserves (Iron content greater than 65%) in the country at 570 Million Tonnes. Karnataka has the highest reserves of Magnetite at 2784 Million tonnes followed by Andhra Pradesh and Goa.

 The details of Recoverable reserves of Heamatites and Magnetite is as under :

 Recoverable Reserve of Heamatite as on 01/4/95

Unit : Million tonnes

S.N0.

Zone/state

High Grade ore(Fe+65%)

Medium grade ore(Fe 62-65%)

Low grade ore(Fe 62%)

Unclassified

Other/ Not known

Blue dust Black Iron

Total

1.

Zone'A'

 

 

 

 

 

 

 

 

Bihar

24

1594

844

144

---

51

2657

 

Orissa

280

1916

737

350

---

11

3294

 

Total

304

3510

1581

494

---

62

5951

2.

Zone'B'

 

 

 

 

 

 

 

 

Madhya Pradesh

596.9

480.7

517

397.4

14.1

18.9

1998

 

Maharashtra

7.3

128.7

46.8

32.2

12.0

---

227

 

Total

577.2

609.4

563.8

429.6

26.1

18.9

2225

 3.

Zone'C'

 

 

 

 

 

 

 

 

 Karnataka

299.9

600.8

73.1

94.2

3.5

0.5

1072

 

 Total

299.9

600.8

73.1

94.2

3.5

0.5

1072

 4.

Zone'D'

 

 

 

 

 

 

 

 

Goa Region

2.7

219.5

469.2

34.1

8.1

11.4

245

 

Total

2.7

219.5

469.2

34.1

8.1

11.4

245

5.

Zone'E'

 

 

 

 

 

 

 

 

A.P.

14.3

1.90

31.70

2.7

0.4

-

51

 

Rajasthan

-

0.28

7.68

1.0

0.04

-

9

 

Total

14.3

2.18

39.38

3.7

0.44

-

60

 

Grand Total

1198.10

4941.88

2726.48

1055.60

38.14

92.80

10053

 

Recoverable Reserves of Magnetite (As on 1/4/95)

S.No

State

Metallurgical grade

Coal washery grade

Foundry

Unclassified

Other/Not known

Total

1.

Andhra Pradesh

37.9

-

-

380.0

-

417.9

2.

Bihar

-

4.9

-

0.2

0.07

5.17

3.

Goa

98.3

-

-

64.5

0.4

163.2

4.

Karnataka

1162.7

-

-

1615.8

5.4

2783.9

5.

Kerala

36

-

-

-

-

36

6.

Maharashtra

0.2

-

-

-

-

0.2

7.

Rajasthan

-

-

0.3

-

-

0.3

8.

Tamil Nadu

1.1

-

-

-

-

1.1

 

 Total India :

1336.2

4.9

0.3

2060.5

5.87

3407.77

 

Production

 Production of iron ore (including concentrates) during the year 1997-98 was 73.45 million tonnes as against 68.17 million tonnes in the previous year. State-Wise production figures indicate that Madhya Pradesh would continue to be the leading iron ore produceing State accounting for 26% of the total production during the year, followed by Karnataka with 22%, Goa 19%, Orissa 17% and Bihar 16%. The remaining production was from Andhra Pradesh and Maharashtra.

Despatches

 Despatches of iron ore (including concentrates) for 1997-98 were 71.41 million tonnes. The despatches of iron ore for internal consumption and exports would be 40.27 million tonnes and 31.14 million tonnes respectively.

 Production and despatches of iron ore during the last 5 years was as under:

Year/ Period

Production

Despatches

 

Qty (MT)

Value (Rs. Crores)

Total(MT)

For Internal consumption(MT)

For Export (MT)

1993-94

59.65

1039.39

58.49

28.57

29.92

1994-95

64.51

1186.24

61.68

33.37

28.31

1995-96

67.42

1355.32

65.32

37.19

28.13

1996-97

68.17

1479.58

67.67

38.16

29.51

1997-98

73.45

1642.84

71.41

40.27

31.14

M.T. : Million Tonnes.

 

Iron Ore Exports

 The exports during the year 1997-98 were at 35.26 (Prov.) million tonnes as against 29.65(Prov.) million tonnes in 1996-97.

Manganese Ore

Reserves

 As per the latest inventory the recoverable reserves of manganese ore are estimated at 176 million tonnes. The main reserves found in India are of blast furnace grade. The reserves of ferro manganese grade are very limited i.e. 12% of the total reserves only.

 Production

 Production of manganese ore during 1997-98 was1.60 million tonnes as against 1.81 million tonnes in 1996-97. Orissa, Madhya Pradesh, Maharastra and Karnataka were be the principal producing state accounting for 34%, 22%, 20% and 17% respectively in the total production of manganese ore in 1997-98.

 Despatches

 Despatches of manganese ore during 1997-98 were 1.64 million tonnes of which 1.41 million tonnes were be for internal consumption and 0.22 million tonnes for exports.

 Production and despatches of manganese ore from 1994-95 to 1997-98 are indicated below :

Year/ Period

Production

Despatches

 

Qty ('000T)

Value (Rs. Crores)

Total ('000T)

For Domestic Consumption('000T)

For Export('000T)

1994-95

1681

145.06

1737

1502

235

1995-96

1837

159.88

1796

1597

199

1996-97

1811

176.07

1800

1551

249

1997-98

1606

165.09

1643

1416

227

 

Export

 Export policy of manganese ore is decided keeping in view the need for conserving high grade ores. Alongwith this, effort is also made to replace the export of ores with export of value added items.

 For the year 1997-98 the maximum ceilings of manganese ore allowed for export were as follows:

Item

Ceiling for 1997-98 (in lakh tonnes)

  1. Medium Grade Manganese Ore/blended ore containing 38% to 46% manganese and more than 0.15% Phos.

1.00

  • Medium Grade Manganese ore/blended ore containing 38% to 46% manganese and more than 0.10% Phos.
  • 0.50

  • Low grade manganese ore/blended ore containing less than 38% manganese.
  • 4.00

  • Manganese ore fines below 12mm in size containing less than 44% manganese.
  • 1.50

     

    Actual export during last two years have been as follows:

    Year

    Quantity (in lakh tonnes)

    Value (Rs. in crores)

    1996-97

    4.17

    58.57

    1997-98

    2.59

    42.20

     

    Chromite ore

    Reserve

    As per the latest inventory, the total recoverable reserves of chromite are estimated at 88 million tonnes. Orissa is the largest Chromite ore producing state in the country accounting historically for 96% of its total production, followed by Karnataka which produced about 4% of the total production. Small quantities are also produced in Andhra Pradesh and Manipur.

     Production

    Production of Chromite in 1997-98 was 15.64 lakh tonnes as against 14.56 lakh tonnes in 1996-97. Orissa continues to be the chief producing state accounting for 98% of the total production.

     Despatches

    Production and despatches of Chromite during the year 1994-95 to 1997-98 are given below:

    Year/ Period

    Production

    Despatches

     

    Qty ('000T)

    Value (Rs. Crores)

    Total('000T)

    For Domestic Consumption('000T)

    For Export('000T)

    1994-95

    1132

    252.23

    1068

    621

    447

    1995-96

    1700

    356.82

    1597

    1121

    476

    1996-97

    1456

    290.61

    1224

    698

    526

    1997-98

    1564

    308.67

    1366

    872

    494

     

    Export

    Keeping in view the limited reserve of Chromite ore in the country, only certain grades of ore are allowed for export. Exphasis has been laid on export of beneficiated chromite concentrates. From the year 1997-98, a five year Export policy was decided upon by Government so us to enable the exporters to establish their presence in the international market.

     The maximum ceilings for export of Chromite ore for 1997-98 were as follows:

    Item

    Ceiling for 1997-98 (in lakh tonnes)

    1. Low silica friable/fine chromite ore with chromium oxide not exceeding 52% & Silica exceeding 4%.

    3.00

  • Chromite lumps containing Chromium Oxide not exceeding 40%.
  • 1.00

  • Beneficiated chromite concentrates (feed grade to be less than 33%).
  • No ceiling

    Actual exports during last two years have been as follows:

    Year

    Quantity (in lakh tonnes)

    Value (Rs. in crores)

    1996-97

    3.02

    137.00

    1997-98

    2.70

    106.00

     

    Ferro Alloys

    Introduction

    Ferro alloys are essential additives in steel making used for imparting desired properties to steel. The product mix of ferro alloy industry mainly consists of Ferro Manganese (Fe Mn), Ferro Silicon (Fe Si.) and Ferro Chrome (Fe Cr.) - called the Bulk ferro alloys. There is another category of ferro alloys, called Noble ferro alloys, which consists of Ferro Vanadium, Ferro Titanium, Ferro Molybdenum, Ferro Niobium, Ferro Tungstun etc., whose production is negligible.

    The production of ferro alloys in India started in early fifties with the industry growing manifold during these four decades. The industry is mainly concentrated in four states viz. Orissa, Maharashtra, Andhra Pradesh and Karnataka for their being rich in the basic raw materials for the production of the ferro alloys.

     Installed Capacity and Utilisation

    There are 35 large and medium size units (including four 100% EOUs) with an installed capacity of 1.3 million tonnes (including 2 lakh tonnes of Charge Chrome capacity of four 100% EOUs). Besides this, there are small scale units having an installed capacity of about 1.80 lakh tonnes per annum.

    Ferro alloy industry is a highly power intensive industry. High power tariffs, coupled with relatively poor quality of supply is one of the major reasons affecting the production and profitability of ferro alloy industry. Average consumption of power per tonne of different bulk ferro alloy ranges between 2700-4065 kwh in the case of ferro silicon. Due to this, the capacity utilisation in the industries has been in the vicinity of 50% to 55%. The production of ferro alloys indirectly related to the plan of production and growth of steel industry. The production of major bulk ferro alloys and Noble ferro alloys during last five years was as under:

     Year

    Quantity (in lakh tonnes)

    1993-94

    4.70

    1994-95

    4.78

    1995-96

    5.73

    1996-97

    6.94

    1997-98

    7.91*

    * Source: Indian Ferro Alloys Producers' Association, Mumbai.

     Export of Ferro Alloys

    Export of ferro alloys from India have been showing an upward trend as may be seen from details given below:

     Year

    Quantity (in lakh tonnes)

    Value (Rs.in crores)

    1993-94

    1.68

    251.56

    1994-95

    1.74

    257.26

    1995-96

    1.90

    451.55

    1996-97

    2.11

    407.92

    1997-98

    2.59

    504.55*

     *Source: Indian Ferro Alloys Producers' Association, Mumbai

     Coal

    Coal is a major raw material for the Iron & Steel Industry which consumes both Coking & Non-Coking coal.

     Consumption of Coking Coal

    During 1997-98 the consumption of coking coal in SAIL Steel Plants (including IISCO), TISCO and VSP was as under :

    (in million tonnes)

     

    SAIL

    TISCO

    VSP

    Indigenous Sources

    7.085

    2.324

    0.67

    Imports

    6.133

    0.942

    2.39

    Total

    13.218

    3.266

    3.06

     

    Consumption of Non-Coking Coal

    During the year 1997-98 SAIL Steel Plants (including IISCO) consumed 4.562 million tonnes of non-coking coal from domestic sources which TISCO consumed 1.450 million tonnes of non-coking coal. During 1997-98, VSP consumed 1.39 million tonnes of non-coking coal.

     Refractories

    Refractories are the primary materials used in the internal lining of industrial furnaces and are classified from the chemical composition angle into - Acid Refractories, Basic Refractories and Neutral Refractories. In steel industry refractories are used for lining of coke oven batteries, blast furnaces, steel production furnaces, reheating furnaces, electrical arc furnaces etc. With the technological changes in the steel industry, the major thrust has been on economising on the use of the materials and improving technology in each area of operation/process where refractories are being used. The gradual phasing out of open hearth furnaces, adoption of continuous casting route and modernisation of secondary steel making processes, have lessened the demand for conventional refractories and increased demand for high performance refractories. In general, it can be said that all these improvements have resulted in lowering specific consumption of refractories per tonne of steel.

     Production of refractories during the year 1997-98 is given below:

    Refractory Item

    Production (M.T.)

    Firebricks and Shapes

    172193

    High Alumina bricks and shapes

    240138

    Silica bricks and shapes

    38471

    Basic bricks and shapes

    202106

    Special Products

    17427

    Others

    39075

    Total :

    709410

     

     The import of refractory items in 1997-98 stood at 27804 tonnes while exports were of the order of 9770 tonnes. In value terms, export during 1997-98 was Rs.20 crores.