Odisha’s second largest merchant miner- Serajuddin Mine has ramped up iron ore production last month and hit 1 MnT mark in Jan’19. Production figure has hit a 19-month high as similar production achieved was in May’17. Company has increased its iron ore production by 16% in Jan’19 as against 0.86 MnT in Dec’18.
According to market sources report to SteelMint, in Feb’19 production of iron ore is expected to ramp up further despite being a small month. There has been an increase in monthly production of Serajuddin mines from the last three months, as it has started operations at another pit which was closed for quite some time owing to the technical issue.
Domestic Iron ore prices have dropped from the quite few months on supply pressure. Major merchant miners in Odisha are still giving discounts on bulk purchase, at the same time they are looking at scaling up their iron ore production in order to utilize their remaining Environmental Clearance (EC) approved for the financial year 2019 (Apr 2018 – Mar 2019).
As per sources, the current price assessment is around INR 3,800-4,000/MT (ex-mines, including Royalty, DMF & NMET) for 5-18 mm and INR 1,600-1,8000/MT for fines Fe 63%.
Serajuddin mines Balda iron ore block has an EC limit of 15.15 MnT and produces around 10 MnT iron ore annually.
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