In FY15, Indian dispatch of chrome ore and concentrates was recorded at approximately 1.6 MnT. In FY16 (April-August), the dispatch is recorded at approximately 0.83 MnT
Odisha contributes around 98% of the total chrome ore produced in India. The chrome ore market condition affects ferro chrome producers who do not have captive chrome ore mines the most, as they need to procure the ore at competitive prices to keep production cost from flaring up.
In 2014, OMC, the biggest merchant miner of chrome ore dispatched 598,497 MT of chrome ore and concentrates. However, in 2015 (January-August) OMC has already dispatched 462,371 MT.
In 2014, Tata Steel dispatched 406,482 MT of chrome ore and concentrates for captive consumption and merchant sales. This was before the lease validity for Tata Steel’s chromite mine in Sukhinda valley had lapsed and mining was stopped on 17 May’14. Mining operations resumed on 22 Jan’15 after receiving 3rd lease renewal from the Odisha government.
In 2015 (January-August) Tata Steel has dispatched 222,865 MT of chrome ore, all for captive consumption.
In another development, Tata Steel has finalized a conversion agreement with three companies namely Tirumala Balaji Pvt. Ltd., Aarti Steels Ltd. and Nava Bharat Ventures Ltd. for conversion of chrome ore into ferro chrome. These three plants together will be dedicated to produce 15,000 TPM ferro chrome for Tata Steel. Also, if they still have more chrome ore and concentrates left with them, they will sell it to other ferro chrome producers.
Below is a table of dispatches by chrome ore mines in 2014 and 2015 (January-August). This data is collected by the Govt. of Odisha based on material movement by trucks. OMC is the biggest merchant miner, followed by IMFA (captive consumption) and Tata Steel.
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