Unit 3: Distribution and Utilization of Iron Ore

*Iron Ore:

Iron ore is vital for modern civilization and industries. The standard of living
in a country is often judged by its iron consumption.

* Types of Iron Ore:

1. Haematite: Best quality (70% iron), red color. Found in Odisha, Jharkhand,
Chhattisgarh, Andhra Pradesh, Karnataka, Maharashtra, and Goa.

2. Magnetite: Second-best (60-70% iron), black color, magnetic. Found in

Karnataka, Andhra Pradesh, Rajasthan, Tamil Nadu, and Kerala.

3. Limonite: Yellow, 40-60% iron, low quality, easy to mine. Found in Raniganj
(West Bengal), Garhwal (Uttarakhand), Mirzapur (U.P.), and Kangra (Himachal
Pradesh).

4. Siderite: Poor quality (<40% iron), contains impurities, not economically

viable.

* Reserves in India:

• Haematite: 17,882 million tonnes. Major states: Odisha (33%), Jharkhand

(26%), Chhattisgarh (18%).

• Magnetite: 10,644 million tonnes. Major states: Karnataka (73%), Andhra

Pradesh (14%), Rajasthan (5%), Tamil Nadu (4.9%). Smaller deposits of both
types exist in other states like Assam, Bihar, Goa, and Maharashtra.

Production: India has made significant progress in iron ore production, but
production saw a decline after 2009-10, which is concerning for the country’s
industrial growth. Over 96% of iron ore production is concentrated in just five
states, highlighting uneven distribution of resources.

* Major Iron Ore Producing States:

1. Odisha

i) Contribution: Produces over 40% of India’s total iron ore.

ii) Major Deposits: Rich haematite ores (60% iron content) in Sundargarh,
Mayurbhanj, Cuttack, Keonjhar, Sambalpur, and Koraput.

iii) Key Areas: Barabil-Koira Valley: India’s richest haematite deposit.

iv) Odisha has the largest share of high-quality reserves in India.

2. Goa

i) Contribution: 20% of India’s iron ore production.

ii) Ore Quality: Mostly low-grade limonite and siderite.

iii) Key Areas: Mines in North Goa (Pirna, Asnora, Sirigao), Central Goa, and
South Goa.

iv) Significance: Goa was once the largest producer, but production has
declined. Most of its ore is exported to Japan. Mechanized open-cast mining
is common here.

3. Chhattisgarh

i) Contribution: 18% of India’s total production.

ii) Major Deposits:

• Bailadila Range: Asia’s largest mechanized mine, with high-grade ore (65-
69% iron content).

• Dalli-Rajhara: Supplies ore to the Bhilai Steel Plant.

• Other deposits: Raigarh, Bilaspur, and Surguja.

iii) Infrastructure: A 270 km slurry pipeline from Bailadila to Vizag reduces

transportation costs.

4. Jharkhand

i) Contribution: 11% of total production, with 25% of reserves.

ii) Major Deposits:

• High-grade ores in Singhbhum (Noamandi, Budhu Buru, Gua).

• Magnetite deposits in Palamu and lesser deposits in Hazaribagh, Dhanbad,

and Ranchi.

ii) Jharkhand’s reserves are among the highest quality, lasting for decades.

5. Karnataka

i) Contribution: 8% of total production.

ii) Major Deposits: High-grade haematite and magnetite in Bellary, Sandur,

Chikmagalur, and Dharwad districts.

iii) Production has tripled since the 1980s.

Other Producing States:

• Andhra Pradesh: Kurnool, Cuddapah, Nellore.

• Maharashtra: Chandrapur, Ratnagiri.

• Madhya Pradesh: Small deposits in Jabalpur.

• Tamil Nadu: Salem, Tirunelveli.

• Rajasthan: Jaipur, Bhilwara.

• Uttar Pradesh: Mirzapur.

• Himachal Pradesh: Kangra.

Export: India is the fifth-largest exporter of iron ore in the world, exporting
about 25% of its total production to countries like Japan, Korea, and
European nations. Japan is the largest buyer, accounting for around three-
fourths of India's iron ore exports. Major ports like Vishakhapatnam, Paradip,
Marmagao, and Mangalore handle the bulk of these exports. However, due to
the growing demand for iron ore in the domestic market, driven by the
expansion of India’s iron and steel industry, exports have declined
significantly, from 47.2 million tonnes in 2011-12 to 16.5 million tonnes in
2013-14. To improve this, efforts are being made to increase production so
that sufficient quantities of iron ore are available for export, while also
meeting the needs of the expanding home market. Exporting iron ore is vital
for earning foreign exchange.

* Utilization of Iron Ore in India

1. Iron Ore Usage in Industries:

Iron ore is primarily used in the production of iron and steel. India’s growing
steel industry consumes a significant amount of the iron ore produced
domestically. Steel plants, such as those in Bhilai, Rourkela, and Jamshedpur,
rely on iron ore for production. As the country’s industrialization increases,
the demand for steel grows, leading to a higher demand for iron ore.

2. Steel Production:

Iron ore is the key raw material for producing steel, and the availability of
high-quality iron ore is essential for ensuring the efficiency and quality of
steel production. The domestic consumption of iron ore is closely linked to
the expansion of the iron and steel sector, which contributes significantly to
India’s economy.
3. Infrastructure Development:

Iron ore is essential for India’s infrastructure development, including the

construction of buildings, roads, bridges, and other essential structures. The
growing demand for steel for infrastructure projects, especially in sectors like
construction, automobiles, and heavy machinery, contributes to the higher
domestic consumption of iron ore.

4. Export and Foreign Exchange:

While much of the iron ore produced in India is used domestically, a

significant portion is still exported. India’s iron ore exports are vital for
earning foreign exchange. The country's export dependency, especially to
countries like Japan, South Korea, and Gulf nations, plays a key role in its
economic relations with these nations.

5. Economic Impact:

Iron ore mining and related industries provide direct and indirect
employment to millions of people. Over 34,000 people are dependent on
mining-related activities in Goa alone. The iron ore sector also drives
economic growth in the regions with large mining operations, leading to
increased employment and infrastructure development.

* Key Observations

• Lopsided Distribution: Most production is concentrated in Odisha,

Chhattisgarh, Goa, Jharkhand, and Karnataka.

• Export Dependency: A significant portion of the ore, especially from Goa

and Bailadila, is exported to Japan and other countries.

• Infrastructure: Mines in Odisha and Chhattisgarh are better connected to

ports (e.g., Vishakhapatnam, Marmagao), ensuring efficient export logistics.

• Economic Impact: Over 34,000 people depend on mining-related activities

in Goa alone.

India’s iron ore industry is vital for its economy, but challenges such as
declining production trends and uneven resource distribution need to be
addressed for sustainable growth.