Iron ore production in Odisha moved up marginally in July’15 to 5.04 MnT, whereas dispatches fell to 3.57 MnT.
Odisha’s monthly iron ore production rose by 8% M-o-M from 4.67 MnT in June’15 to 5.04 MnT in July’15. Major merchant miners namely Rungta Mines and Serajuddin Mines produced 1.18 MnT and 0.65 MnT respectively in July’5.
Odisha Iron Ore Production & Dispatches
|
Mines |
Production | Dispatches | ||
| Jul’15 | Jun’15 | Jul’15 |
Jun’15 |
|
| Rungta Mines | 1.18 | 1.16 | 0.52 | 0.91 |
| Tata | 0.86 | 0.51 | 0.31 | 0.37 |
| Serajuddin Mines | 0.65 | 1.01 | 0.49 | 0.91 |
| SAIL* | 0.58 | 0.6 | 0.58 | 0.6 |
| Indrani Patnaik | 0.36 | 0.32 | 0.33 | 0.44 |
| KJS Ahluwalia | 0.33 | 0.02 | 0.23 | 0.14 |
| Essel Mining & Ind.Ltd. | 0.18 | 0.18 | 0.13 | 0.2 |
| K.N.Ram & Co. | 0.16 | 0.17 | 0.12 | 0.14 |
| O.M.C. Ltd. | 0.09 | 0.12 | 0.21 | 0.2 |
| Others | 0.67 | 0.6 | 0.65 | 0.81 |
| Total* | 5.04 | 4.67 | 3.57 | 4.73 |
Production & dispatches in MnT
Provisional data
*Dispatch figures of SAIL were not available therefore considered that SAIL’s entire production was dispatched
Source: Govt. of Odisha
Increased Production and Low Dispatches Lead to Piling Up of Inventories
Iron ore dispatches from Odisha mines have fallen sharply by 25% M-o-M in July’15 to 3.57 MnT. The major reason being monsoon season. Other reason could be high iron ore price compared to pellet, which might have shifted sponge manufacturers towards the latter. Thus, high production and low dispatches have resulted into piling up of inventories.
Odisha Iron Ore Production & Dispatches from Jan’15 to July’15
| Mines Name | Production | Dispatches |
| Serajuddin Mines | 8.19 | 6.07 |
| Rungta Mines | 6.62 | 4.22 |
| Tata | 5.11 | 2.80 |
| Indrani Patnaik | 2.15 | 2.38 |
| O.M.C. | 1.66 | 1.70 |
| Essel Mining & Ind | 0.92 | 0.93 |
| K.N.Ram | 0.35 | 0.29 |
| KJS Ahluwalia | 0.35 | 0.38 |
| SAIL* | 3.49 | 3.49 |
| Others | 3.95 | 3.96 |
| Total | 32.79 | 26.2 |
Production & dispatches in MnT
Provisional data
*considering SAIL’s entire production was dispatched
Source: Govt. of Odisha
Will Odisha be able to produce 70 MnT iron ore in FY16?
It can inferred from the figures in above table that miners are not aggressive in increasing production. In first seven months of 2015 (Jan’15-July’15) Odisha’s iron ore production has been 32.79 MnT while, dispatches have just amounted to a total of 26.2 MnT. Thus, it appears that the state’s iron ore production might not touch 70 MnT mark this fiscal.
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