People's Democracy

CITU Opposes Gom’s Proposed National Mineral Policy

CITU issued the following press statement on July 7, 2007

THE Centre of India Trade Unions (CITU) expresses serious concern over reported proposal of Group Of Ministers (GOM) to continue with the present policy of exporting iron ore and reiterates its demand for immediate ban on export of Haematite iron ore, which is mostly used in Indian steel plants. CITU draws the attention of the Government to union Steel minister’s statement in parliament that with the known reserves of Haematite iron ore, which is at present 7.6 billion tonnes, the steel plants can survive only for few years after 2030 (Rajya Sabha USQ NO. 4120 dated 11.05.2007). CITU also points out that the National Steel Policy, which envisages a goal of 110 million tonnes steel production in 2019 – 2020, would require 190 million tonnes of Haematite iron ore to achieve this production. CITU deprecates the attempts by vested interests to confuse the issue by combining the reserve of Haematite and Magnetite iron ore to project a rosy picture of available iron ore reserves as a whole, knowing fully well that Magnetite iron ore (which constitutes more than 40 percent of the iron ore reserves) is not used for steel making in India because of higher cost of production.

CITU demands an immediate response from the Steel ministry on the issue as well as immediate stoppage of export of Haematite iron ore.