Ann: Annual Report to shareholders, page-25

Perhaps, is a good description. What most IOR investors forget is that any Indian company can do exactly as IOR is doing by beneficiating the iron ore. Can IOR do it cheaper and greater volumes, frankly I doubt it. There are literally hundreds of iron ore miners in India, and the more efficient and profitable ones are shipping their high grade ore to China.
China no longer wants low grade IO ie 58% to 62% and the discount on these grades is widening from the high grades.
India has so much iron ore that reserves are not a problem, its all about grade and 30% ore is garbage and it costs money to improve the grade. So it will be the cheapest producer and the cheapest method to beneficiation that will make money.
Indian 65% iron ore pellet producers are doing very well at present by shipping to China.
Iron ore is on the nose at present for investors and those who've experienced the delays, corruption and downright rip-offs in India wouldn't put a single dollar there. Those who think that India will become another China are living in a dream. Unless you've travelled and done done business in both countries then its hard to understand, but the differences are huge and therefore I say India will never be like China.
Producing 500,000 tonnes of iron ore is a joke for any iron ore miner, as you need either high grade ie 65% or huge volumes to make money. If IOR can produce 10 million tonnes at $10/tonne then maybe they have a chance.
Until then IOR will remain a dog stock and sensible investors wouldn't touch it with a 10ft barge pole.