India’s iron ore production increased by 11% Y-o-Y in FY18 and was recorded at 202.5 MnT. Will the growth in Indian iron ore production continue in this fiscal too? SteelMint has analysed output across major iron ore producing states and it is estimated that yearly figure might suffer a fall of about 6% in FY19.
Odisha – India’s largest iron ore producing state and contributes for nearly 50% of country’s output. As per our understanding, states iron ore production may remain majorly stable. Serajuddin – Odisha’s 2nd largest merchant miner iron ore productions remained lower by 46% to 3.55 MnT in Apr-Oct’18 against 6.54 MnT in same time period last year. It is expected expected to increase its production in coming months of FY’19 after resuming operations at one of its blocks in Odisha in Oct’18. The operations were suspended owing to technical issues. This will add to supply of iron ore lump which was hampered from the past few months. During Apr-Oct’18 Rungta Mines iron ore production declined marginally by 1%.to 12.75 MnT against 12.68 MnT in the same preceding time in last fiscal.
On the other hand state owned miner – Orissa Mining Corporation (OMC) doubled its iron ore production to 3.8 MnT for the duration Apr-Oct’18 against 1.71 MnT in the same period last year. Iron ore output from Essel Mining Jilling and RP Sao moved up with consent received on resumption of operations from the Apex Court in Feb’18.
NMDC – India’s largest iron ore miner has observed a decline its production from its Chhattisgarh mines in FY’19 amid monsoons. According to data maintained with SteelMint, during Apr- Oct’18 Bailadila mines production stood lower by 15% to 9.64 MnT as against 11.31 MnT in the same period last year.
Resumption of iron ore operations in Goa continues to remain a question mark. Iron ore industry in Goa has come to a standstill from 16th Mar’18 with Supreme Court’s order of canceling 88 mining leases, since then no iron ore production has been observed. The Supreme Court of India on 7th Feb ‘18 said that the 88 iron ore mine leases that were granted second renewal in violation in decisions and directions of this court may continue operations till 15 Mar’18 and were directed to stop all mining operations with effect from 16 Mar’18 until fresh environmental clearances are granted. Goa contributed around 7 MnT iron ore production in the last fiscal.
Karnataka iron ore output may get dented on NMDC Donimalai resumption issues. NMDC Karnataka iron ore production for Apr-Oct’18 fell by 16% to 5.83 MnT as against 6.92 MnT in the same period last preceding year. Iron ore operations are still on hold at NMDC’s Donimalai mine which was recently renewed lease. On 3rd Nov’18 NMDC lease got expired and was later renewed for the next 20 years. State govt has asked NMDC to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt, on which clarity is still awaited.
3rd Indian Iron Ore & Pellet Summit
Will Indian production of iron ore Decline or remain stable this year? This, among other pressing issues, will be incisively deliberated at the 3rd Indian Iron Ore & Pellet Summit to be held on 18 & 19 February, 2019 in Delhi NCR.