Diversification of iron ore distribution can end conflict: Rating agencies

Existing mining company could have own infrastructure in the form of trucks, jetties, site offices, cranes and other leased equipment and not just the mine resource

To address the ongoing tug of war between domestic iron ore merchant miners and the steel industry, rating agencies see the 

diversification of resource distribution as the key solution.

Recently, steel producers asked the government to auction iron ore mining licenses currently held by private miners when they expire in March 2020. The Indian Chamber of Commerce (ICC), Associated Chambers of Commerce and Industry of India (Assocham) and the Chattisgarh Sponge Iron Manufa­cturers’ Association (CSIMA) and Pellet Manufacturers’ Association of India (PMAI) have written to the planning think-tank NITI Aayog, lobbying for mine auctions.

Separately, Federation of Indian Mineral Industries (Fimi)