Metal firms stare at uncertainty on ore front
Metal companies, especially primary steel manufacturers, are facing an uncertain future on sourcing of iron ore, the key raw material, with leases of about 288 mines, including iron ore, bauxite, limestone and manganese, set to get cancelled in March next year.
These mines will be auctioned as per the Mining and Minerals Regulation (Development) Act. They are currently owned by merchant miners without any forward integration with metal production.
Sources said a separate lobby of miners is working to put off the cancellation of existing leases by 10 years and delay the auction process.