- Iron ore production in Odisha stood at 22 MnT in H1 FY15; a sharp fall of 25-30% from last fiscal in the same period
- Odisha’s Iron ore production in this fiscal is expected to be 60 MnT, according to Mines Director
Iron ore production has recorded a fall of about 25-30% in H1 (Apr’14-Sep’14) of the current fiscal against corresponding period of the last fiscal. Production fell to 22-23 MnT in Odisha, according to provisional data maintained by Odisha mining department.
Production has fallen drastically after the Supreme Court’s order of suspending mines running under 2nddeemed renewal, which accounted for 26 mines (including captive and merchant). Odisha government later issued an express order, which allowed captive miners like Tata & SAIL to resume their operations.
Major mines that have been non-functional due to 2nd deemed renewal are KJS Ahluwalia, KN Ram, Kaypee Enterprises, Mesco, AMTC, Rungta. Total production of 18 mines, which fall under 2nd deemed renewal was around 18-19 MnT in FY14.
Also, Sharda mines, which produced 7 MnT in FY14, is also non-operational since April 2014 due to lack of environmental clearances.
|
Odisha Iron Ore Production in H1 FY15 |
|
|
Name of Mines |
Qty (in MnT) |
|
Rungta Mines |
6.08 |
|
Tata |
3.98 |
|
SAIL |
2.35 |
|
Indrani Patnaik |
1.97 |
|
Seerajudin |
1.94 |
|
Essel Mining |
1.08 |
|
OMC |
0.97 |
|
Jindal Steel & Power |
0.75 |
|
Others |
3.00 |
|
Total |
22.12 |
Provisional Data
Source: Odisha Mining Department
According to industry sources, there has been no pro-active steps have been taken by the state government for renewal of closed mines. Most of the participants believe that government is waiting for the Supreme Court’s direction on CEC report, which was submitted recently. If quick action is not taken on either liquidation of stock or renewing mines, situation will get very tough for Indian steelmakers.
Odisha is the largest Iron ore producing state, which contributed around 50% of India’s total production.
Imports may touch 9-11 MnT in FY15
India’s Iron ore imports hit highest ever at 5 MnT in Apr-Oct’14 and may touch 9-11 MnT this fiscal year, according to SteelMint. In Oct’14 alone, imports have increased to 2.2 MnT from 0.8 MnT in Sep’14. While, another 1.4 MnT is expected till 25 Nov, 2014.
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