India: Iron Ore Production in Odisha likely to fall by 35-40% in FY15

Iron ore production in Odisha, India’s largest Iron ore producing state, is expected to witness a downfall of 35-40% this financial year owing to mining ban. State produced about 74 MnT in FY14, which may fall to 44-46 MnT in FY15.

Iron ore output in Odisha was hit in May’14, when the Supreme Court had passed an order to shutdown 26 mines operating without a valid lease. The state government later allowed operation of 8 captive and state-owned mines.

According to monthly returns submitted by miners to the state government, it is observed that total production from Apr-Dec’14 stood at about 33 MnT (Find the list attached).

^Provisional data
* Mines closed
** One mines operational, out of three

In December, the Union Environment Ministry approved a proposal from the Odisha government to allow two Iron ore mining groups (Rungta & Serajuddin) in order to ramp up their output by a combined 16.56 MnT, which will add some additional production.

India’s Total Iron Ore Production likely to be 120 MnT in FY15

India’s total Iron ore production likely to be 120 MnT in FY15. In FY14, India’s Iron ore production was recorded at 152 MnT from a peak of 218 MnT in FY10. Production this financial year is expected to fall to 115-120 MnT due to shutdown in Odisha & Jharkhand.

Iron Ore Imports at its peak in FY15

With sharp decline in domestic Iron ore production, import of Iron ore to India has reached an all time high. Total import during Apr-Dec’14 was recorded at about 9.4 MnT and is expected to touch 14-15 MnT in FY15.