NMDC’s Iron Ore Production Dips by 24.4% in Q1 FY16

NMDC (National Mineral Development Corporation), India’s largest iron ore producer, has reported a sharp fall of 24.4% in 1st quarter of this fiscal. Its iron ore production was 7.85 MnT in Q1 FY15 that fell drastically to 5.93 MnT in Q1 FY16.

NMDC iron ore production & sales: Q1 FY16 vs Q1 FY15

Figures in MnT
Source: SteelMint

Production from NMDC, Chhattisgarh falls by 2.38 MnT

It can be inferred from the table that production and dispatches from NMDC’s Bailadila mines in Chhattisgarh have reduced considerably in comparison with the 1st quarter of last fiscal. Both iron ore production and dispatches from NMDC, Chhattisgarh have reduced by 42% (2.38 MnT) in Q1 FY16 compared to the same period of FY15. Production and dispatches were adversely impacted by the maoists attacks in the Dantewada district of Chhattisgarh.

However, iron ore production from its Karnataka has noticed an increase of 21% in Q1 FY16 against same period in last fiscal.

Earlier in Mar’15, the company announced that it has started the trial production at its new project in Bailadila region having capacity of 7 MnT pa. The company has set an iron ore production target of 35 MnT for this fiscal.

In Q1 FY16, NMDC had cut prices by upto 25% owing to fall in global iron ore prices and declining iron ore prices in Odisha. Odisha miners had reduced prices by about 11% in Q1 FY16 over falling demand from sponge iron manufactuerers. Sponge iron (C-DRI, 78 FeM) prices in Rourkela have declined by 11% in similar time frame.