India revises royalty pricing for low-grade iron ore
→Lower-grade ore levies now calculated independently
Change
India removed the linkage between low-grade iron ore pricing and higher-grade benchmarks for royalty and auction calculations.
Why it matters
Levies on sub-58% iron ore now use a separate pricing basis, reducing cost burdens and enabling commercial viability of beneficiation.
Implications
- → Production costs fall — low-grade ore becomes viable
- → Pricing models change — contracts must adjust
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Source
View on The Hindu