Mineral Concession rules amended to set ASP for haematite iron ore below threshold, including BHQ and BHJ
The Ministry of Mines notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2026 on 10 April 2026, providing a method to publish the average sale price of haematite iron ore below the 45% Fe threshold, including BHQ and BHJ.
Summary
The Ministry of Mines notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2026 on 10 April 2026, setting a methodology for publishing the average sale price (ASP) of haematite iron ore below the threshold value, including Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ). The threshold value — the limit below which mined material can be discarded as waste — is 45% Fe (min.) for haematite iron ore. Earlier there was no method for grades below 45% Fe, so the ASP of the 45% to below 51% Fe grade was applied, making beneficiation uneconomical. Under the amendment, the ASP for the 35% to below 45% Fe grade will be 75% of the ASP of the 45% to below 51% Fe grade, and for below 35% Fe it will be 50%. The rules also clarify that if processing of run-of-mine lowers its economic value, royalty will be charged on lumps and fines after initial screening of unprocessed run-of-mine.
Key facts
- Rules
- Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2026
- Notified
- 10 April 2026 (announced 14 April)
- Threshold
- 45% Fe (min.) for haematite iron ore
- 35% to <45% Fe
- ASP = 75% of ASP of 45% to <51% Fe grade
- <35% Fe
- ASP = 50% of ASP of 45% to <51% Fe grade
- Covers
- BHQ and BHJ, the principal host rocks of iron ore
Practice MCQs 3 questions
What is the notified threshold value for haematite iron ore, below which mined material can be discarded as waste?
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Correct answer: C — 45% Fe (min.)
The notified threshold value for haematite iron ore is 45% Fe (min.).
Under the Mineral Concession (Third Amendment) Rules, 2026, the average sale price of haematite iron ore of 35% to below 45% Fe grade will be what percentage of the ASP of the 45% to below 51% Fe grade?
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Correct answer: B — 75%
For 35% to below 45% Fe, the ASP is 75% of the ASP of the 45% to below 51% Fe grade; for below 35% Fe, it is 50%.
Consider the following statements about the April 2026 amendment to the Mineral Concession rules: 1. Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ) are covered by the new ASP methodology. 2. If processing of run-of-mine lowers its economic value, royalty is charged on lumps and fines after initial screening of unprocessed run-of-mine. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both statements are correct as per the Ministry of Mines.