Steel Authority of India Limited (SAIL), an Indian state-owned steel company, is seeking to build a beneficiation plant to consume the ore produced by its mines in the future.

As of March 31, 2021, SAIL had a total of 42.6 million tons of sub-grade iron ore fines, while only 400,000 tons were sold during the year.

Manish Kharbanda, president of Pellet Manufacturers' Association of India (PMAI), said that the sales of sub-grade iron ore fines outside of mining leased areas will increase the sellers’ royalties and thereby raise costs of distribution. Therefore, it will be more suitable to build a beneficiation plant in mining leased areas for internal consumption rather than selling outside.

Besides, beneficiation is a process to raise the economic value of the ore, which will generate higher-grade ore concentrates and tailings.