The new mine is expected to have iron ore mining capacity of 10 MnT pa.
India’s single largest iron ore producer – National Mineral Development Corporation (NMDC) is all set to begin iron ore mining operations at its new mine in Bailadila sector in Chhattisgarh. The Deposit – 13 located in NMDC’s Bailadila iron ore mines in Chhattisgarh is expected to start mining operations in this year. Following this, iron ore supply is also expected to begin by next year. The new mine is expected to have iron ore mining capacity of 10 MnT pa.
Bailadila mines located in Chhattisgarh have deposits of about 1,200 MnT high grade iron ore having iron ore content around Fe 67%.
C.G. based sponge units to be benefitted – State based sponge, pellet and steel units which source iron ore from NMDC (C.G.) will be benefitted the most as the iron ore mined from the new deposit will be supplied to outside C.G. based units only after fulfilling iron ore requirement of state based units.
Apart from C.G. based units, JSW Steel, Essar Steel, Vizag Steel are the major takers of NMDC (Chhattisgarh) iron ore. Miner also exports iron ore from its Chhattisgarh mines to South Korea and Japan under its Long Term Trade Agreement.
Iron ore production from NMDC Chhattisgarh increases in FY17 – Out of 27.1 MnT iron ore produced by NMDC in FY17 (till Jan’17), 17.2 MnT was produced from its Chhattisgarh mines and rest 9.9 MnT from its mines in Karnataka. Iron ore sales from NMDC (C.G.) during Apr-Jan’17 was recorded at 18.9 MnT.
NMDC’s iron ore production from its Chhattisgarh mines has increased considerably this fiscal. In FY16, NMDC’s iron ore production from Chhattisgarh mines stood at 16.6 MnT.
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