Indian iron ore production continued to drop down consistently as government looks to control illegal mining.
Indian iron ore production down by over 13% in H1 financial year 2013-2014 against same period the corresponding year. According to data assessed by SteelMint, India produced around 82 million tonnes of iron ore during April- September 2012-2013 against a total production of 147 million tonnes in the same year.
However it went down nearly 13 percent and India produced around 71 million tonnes of iron ore during April-Sep 2013-2014 and expected to touch 132-133 million tonnes in 2013-2014.
Production has been down largely due to mining ban in Goa and partial mining allowed in the state of Karnataka, since Supreme Court had put a blanket ban during July 2011, in order to curb illegal mining in the country.
Mining Situation in Goa
Goa, which once accounted for more than 50% of iron ore exports from India, has seen zero exports and production since the ban (imposed in Sep 2012).Market participants are not expecting any resumption in mining activity this financial year.
Mining Condition in Karnataka
The SC had banned illegal mining in Karnataka as well in July 2011, but partial resumption of mining operations was allowed in April this year. However, it will be a while before the mining can come back on track.Expected production is around 15 million tonnes freshly produced and around 5-7 million tonnes sub grade (low grade) iron ore which is lying at mines head being auctioned this fiscal year.
Mining Situation in Odisha
Over all mining condition in Odisha has not been encouraging as well, production was down by 5 million tonnes in 2012-2013. With Shah commission's report yet to be made public, most of the miners are keeping their fingers crossed.
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