India, April 15 -- The Ministry of Mines has notified amendments to mineral concession rules, introducing a clear framework for calculating the average sale price (ASP) of low-grade haematite iron ore, including BHQ and BHJ.

The updated rules provide a pricing structure for ore below the 45% iron (Fe) threshold, which was earlier not specifically defined. Under the new mechanism:

Ore with 35% to below 45% Fe will be priced at 75% of the ASP of 45–51% Fe grade Ore below 35% Fe will be priced at 50% of the ASP of 45–51% Fe grade

This change addresses the earlier issue where lower-grade ore was effectively priced at higher-grade benchmarks, making beneficiation economically unviable.

The move is expected to encourage the use of...