India’s leading iron ore miner, National Mineral Development Corporation (NMDC), produced 2.98 million tonnes (mn t) of iron ore in Jun’21, up 18% as against 2.52 mn t in Jun’20, SteelMint learnt from the state-owned miner’s recent BSE disclosure. It seems, the miner reported its best-ever production in Jun’21.
However, on a monthly basis, production rose by 7% against 2.79 mn t in May’21. Out of the total volume in Q1 FY’22, the miner recorded a major chunk of output from its Chhattisgarh mines at 1.94 mn t and the remaining 1.04 mn t from the Karnataka mines.
NMDC resumed operations in three shifts from Jun’21 compared to the previous two shifts in May due to lockdown restrictions. However, even after the full resumption in operations, the onset of the monsoon and fog are likely to impact production.
The company has reported a 34% increase in its output to 8.89 mn t compared to 6.61 mn t of iron ore in Q1 FY’22. The company has surpassed the previous best iron ore production and sales figures for Jun and also for Q1 since inception.
Source: BSE filings, SteelMint Research
Qty in mn t
Iron ore sales fall marginally in Jun’21
NMDC recorded a 4% decrease in its total iron ore sales for the month under review to 3.18 mn t as against 3.3 mn t in May’21. Total sales from the Chhattisgarh mines stood at 2.22 mn t and the remaining 0.96 mn t were from the Karnataka mines.
The company has registered a 49% hike in sales to 9.57 mn t during the first quarter (Apr’21-Jun’21). The volume stood at 6.41 mn t in the CPLY.
Notably, NMDC had kept the prices stable for Jun’21 deliveries. Meanwhile, the Federation of Indian Chambers of Commerce (FICCI), on behalf of the Chhattisgarh-based iron ore-dependent industries, has urged the state government to implement a pre-emption policy. Any such move could affect NMDC, 84% of whose production ends up being consumed outside the state – as FICCI’s letter to the Chhattisgarh CM points out.
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