Odisha’s iron ore production rise 10% m-o-m as more auctioned mines resume production

Odisha – India’s largest iron ore producing state recorded production of 10.35 mn t in Nov’20, up 10%, as against 9.42 mn t in Oct’20, according to the provisional data of the Odisha Govt. maintained by SteelMint. The figures include – fines, lumps and concentrate.

• JSW Steel’s production stood at 2.22 mn t, up 17% on a monthly basis as against 1.89 mn t in Oct’20. The miner has been raising output from the mines which it had won in the Mar’20 auctions.
• AM/NS India recorded a marginal increase in iron ore production in Nov ’20 and was recorded at 0.27 mn t.
• State owned miner – OMC recorded output of 1.15 mn t for the month of Nov’20 as compared to 0.88 mn t in Oct’20. This is attributed to resumption in production from its Gandhamardhan B block and commencement of operations at Tiring Pahar mines.
• Production from Serajuddin mines increased by 33% m-o-m in Nov ’20
• Notably, KN Ram mine won by Narbheram Power & Steel began production in Nov ’20. The mine has EC limit of 3.5 mn t. Also output from G S Mishra & Sons increased in Nov’20. Jagat Janani also initiated production in Nov’20.

The Directorate of Mines, Odisha government, has sought departmental approval to slap miners with penalties, charged at 24% of average sale price, as published by IBM, on their monthly shortfall in despatch, which is to be appropriated from their respective performance security. The Odisha government’s proposal to penalise the auctioned mines for their failure to meet MDPA commitments could if actually implemented, bring relief to many steel-makers dependent on Odisha’s iron ore.

Odisha Iron Ore Production graph

Outlook- SteelMint also learned that Odisha may entrust at least three iron deposits it auctioned unsuccessfully last year to state -owned PSUs Odisha Mining Corporation and the state’s new exploration agency – Odisha Mineral Exploration Corporation. This is expected to further boost iron ore supplies in the state in the next quarter.

SteelMint’s Odisha iron ore fines Fe 63% index has remained largely stable on monthly basis since mid Nov’20 at around INR 6,400/t (ex-mines, including royalty,DMF, NMET).