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 low-grade iron ore, support resource conservation, and ensure a steady supply for the steel industry as high-grade reserves decline.

Additionally, the amendment clarifies that royalty will be levied based on the value of processed output after initial screening, ensuring that mineral value is not artificially reduced during processing.