Odisha Iron Ore Movement to Fall if Supplies Suspend from Serajuddin Mines

Iron ore supply from India’s largest iron ore producing state – Odisha may come under pressure if supplies get interrupted from Serajuddin Mines. As per market sources report, EC renewal of Serajuddin Mines’ lease is due and it is to expire on 02 Dec’17. In the latest update received, the renewal for the same is still pending and this may result in fall in iron ore supply from the mine if the lease renewal takes considerable time.

This may result in temporary suspension of iron ore supplies from the mine and in whole impacting iron ore movement from the state.

Notably Serajuddin mines is the second largest merchant miner in the state after Rungta mines, with an annual production of about 10 MnT. Serajuddin Mines has EC limit of 15.15 MnT pa.

So far in FY18 (till Sept’17), Serajuddin Mines has recorded production of 5.66 MnT iron ore.

The miner has dispatched 5.69 MnT iron ore during Apr-Oct’17. Major takers of iron ore from Serajuddin Mines during the mentioned time frame were – JSW Steel (1.25 MnT), Bhushan Steel (0.84 MnT), Essar Steel (0.63 MnT), Rashmi (0.62 MnT) and Bhushan Power (0.23 MnT).

Less availability of iron ore in the state amid interrupted supply may result in price push by other major miners.