India: Serajuddin Iron Ore Mines receive extended EC of 15 MnT

Something good for Indian mining industry as Serajuddin & Co, an Odisha based miner, has received approval to mine 15.15 MnT Iron ore per annum against 4.5 MnT pa, confirmed company sources.

“We have received ‘consent to operate’ for 15.15 MnT from Ministry of Environment and planning to start the production soon,” said a company official who sought anonymity. 

Concerned with the growing shortfall of mining revenue, the Odisha government has decided to enhance production from running mines in the state. Accordingly, leading miners including Rungta (3 mines), Serajuddin and S N Mohanty were proposed to increase production limit by additional 16 MnT per year.

Last year (Dec’13), Serajuddin Mines was granted an additional EC (Environmental Clearance) of 11 MnT, which was later withdrawn in the month of April, 2014.

Total Iron ore production from Odisha may fall to 50-55 MnT in FY15 against 74 MnT in FY14, considering 18 key merchant mines, which were closed in May’14 after the Supreme Court’s order on second deemed renewal.

Serauddin Mines resume Iron Ore Sales after 3-months 

Serajudidn mines resumed sales of Iron ore, which was closed since August, 2014. Current offers for Fe 63% fines are INR 3,350/MT and 5-18 mm is being offered at INR 6,250/MT (prices are as per loaded to Wagon; including royalty).

Iron Ore Production

(E)-Expected
Production in MnT
Source: SteelMint Research

Domestic Iron Ore/Pellet Prices under Pressure

Domestic Iron ore & Pellet prices will come under pressure after improvement in supply of Iron ore. Recently, the Odisha government has allocated 4.5 MnT Iron ore to state-based companies under 50:50 rule.