The Sandur Manganese and Iron Ores get an approval to increase its Manganese Ore production to 32,000 MT from 7,400 MT by Central Empowered Committee constituted by the Hon’ble Supreme Court.
India, being the seventh largest Manganese Ore producer has a resource of 495 MnT but its useful reserve is only 93 MnT, which barely makes 19% of the total resources.
In CY17, high-grade Manganese Ore witnessed a sharp rise in its prices as the consumption of Manganese ore in India is envisaged to be around 9 MnT, substantially exceeding its current domestic production at around 2.5 MnT. Hence, India has largely been dependent on imported Manganese Ore.
Moreover, the requirement for manganese ore is expected to commensurately rise to about 11 million tonnes by 2030-31.
Considering the increase in demand for the commodity, such a meager increase in production by The Sandur Manganese and Iron Ores Ltd will not entail any change in the market dynamics. As such there will be no reduction in imports, which was around 3 MnT in CY17.
On the other hand, MOIL, the largest producer of Manganese Ore in India, produces around 1 MnT Manganese Ore annually, has envisaged to double its production from current levels by 2020.
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