More than two years after the Supreme Court allowed mining in A & B category of Iron ore mines in Karnataka, production is gradually picking up. Speaking to miners and steelmakers, it was assessed that production is expected to touch 20-21 MnT in FY15 against 18 MnT in FY14. Although, production is much lower than the current requirement of the state.
“Currently, NMDC and 21 (A & B category) mines are operational; whose combined capacity is about 16.5 MnT (NMDC with 9 MnT and A & B mines with 7.5 MnT). Production is likely to touch 20 MnT in FY15 and 25 MnT in FY16,” reported Mr. Basant Poddar, MD, Mineral Enterprises Ltd (MEL) in an e-mail conversation. In addition, he mentioned that MEL is likely to start operations in last quarter of FY15.
Mining experts also highlighted that regulatory bodies are moving slowly in granting approvals; so far only 21 mines have restarted operations. The sector expects that the state government will execute five-six pending leases, which can add 2 MnT to capacity.
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