NEW DELHI – The Ministry of Mines has notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2026, introducing a specialized methodology for publishing the Average Sale Price (ASP) of low-grade Haematite Iron Ore.
The amendment specifically addresses iron ore falling below the 45% Fe threshold value, including Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ). Previously, these low-grade minerals were taxed at the same ASP as higher-grade ores (45% to 51% Fe), making beneficiation and processing uneconomical for miners.
New ASP Calculation Methodology
To promote the utilization of low-grade resources and ensure the economic viability of beneficiation, the government has established the following pricing structure:
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35% to below 45% Fe Grade: The ASP will be fixed at 75% of the average sale price of the 45% to 51% Fe grade.
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Below 35% Fe Grade: The ASP will be fixed at 50% of the average sale price of the 45% to 51% Fe grade.
Promoting Mineral Conservation
The Ministry stated that this policy shift aims to address the depletion of high-grade iron ore by bringing vast quantities of sub-threshold resources into the usable supply chain. By encouraging the processing of BHQ and BHJ into feed-grade ore for steelmaking, the amendment supports scientific mining and helps India maintain self-sufficiency in iron ore production.
The notification also clarified regulations regarding Run-of-Mine (ROM). It stipulates that if the processing of raw, unprocessed mineral results in a decrease in its economic value, royalty will remain chargeable on the lumps and fines identified after the initial screening of the unprocessed ROM. This ensures that the economic value of minerals is not artificially lowered under the guise of processing.
