Indian Iron Ore Production may Surge by 25% in FY16

Indian iron ore production; hit majorly in FY15 amid temporary mining bans by the Supreme Court, is anticipated to surge by 25% in current fiscal year.

Production in FY15 was estimated at 123 MnT. Of this, Odisha was the major contributor with 48 MnT, followed by Chhattisgarh with 31 MnT. Other states like Jharkhand and Karnataka had produced about 17 MnT and 21 MnT respectively in the same duration.

Why Production will Increase?

Let’s figure out the reasons behind surge in iron ore production.

MMDR Bill

The recent amended MMDR (Mines and Minerals Development and Regulation) act has given an extension of 5 years and 15 years for merchant and captive miners respectively, who have leases 50 years old and called illegal by the apex court. This amendment in MMDR act may lead to surge in iron ore production.

In addition, provision will help resume mining in Odisha. Thus, production is expected to touch 65 MnT in current financial year.

Increased Production from Karanataka and Goa

Production from Karnataka and Goa is likely to go up this financial year. More B category mines in Karnataka will start operations. Production may ramp up to 24-25 MnT in FY16, which was 21 MnT in FY15.

Besides, Goa will start production only towards the second half of this financial year. If all goes well, Goa could produce about 5 MnT.

Increased Production from NMDC

NMDC (National Mineral Development Corporation), India’s largest and state owned miner, has recently given a guidance of 35 MnT production in FY16 against 31 MnT in FY15.

To find out more about the impact of MMDRA on Indian mining industry and NMDC’s supply of the key raw material in domestic market, join us at India’s largest business conference on Iron ore, Pellet & DRI to be held in Kolkata on 13 & 14 August 2015 at Hyatt Regency. The summit is expected to be attended by 250+ companies from across the world. Register Now

Get answers to

1. What will be the global iron ore prices, demand & supply scenario?
2. Will Iron ore prices in China revive soon?
3. How will the new MMDR Bill (2015) change the dynamics of the Indian mining industry?
4. Will the export duty cut on Iron ore to 10% benefit the Indian exporters?
5. What are NMDC’s production growth plans and supply in domestic market?
6. Will Indian steel makers continue to import in FY16?
7. What is the potential for Indian Pellet in Iran?
8. How will coal block & linkage auctions impact DRI industry in India?
9. Will Indian DRI dependence increase on South African and Australian Coal?

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