Iron ore prices to rise 15-20% in FY21 after expiry of mining leases

By March 2020, more than 30 iron ore mining leases, all held by merchant or non-captive lessees, are scheduled to expire

Iron ore prices in the country are projected to rise by 15-20 per cent after iron ore mining leases of merchant mines expire by March 31, 2020.

Since around 70 per cent of the steel makers - integrated or non-integrated - are operating without captive iron ore resources, they are wholly dependent on supplies from merchant miners.

In FY19, the country is estimated to have produced 207 million tonnes of iron ore, 65-70 per cent of which was supplied by the merchant miners, according to a report by CRISIL. Odisha alone produced 114 million tonnes of iron ore, accounting for