Tata Steel ferro chrome sales increased by 131.5% in FY16 in comparison to FY15.
In FY15, Tata Steel sold 73,000 MT of ferro chrome where as in FY16 the total ferro chrome sales was recorded at 169,000 MT. The ramp up for Ferro Chrome production started post resumption of mining at Sukinda.
Tata Steel Chrome Ore production increased by 1 MnT in FY16, whose production was only 0.23 MnT in FY15. As per the new MMDR Act 2015 all merchant mining leases will expire in 2020 and all the merchant blocks will be put on auction after that. Tata Steel’s Sukinda Chrome mine was accorded merchant status, and this led to Tata Steel maximizing their chrome ore resource and ramping up production.
Increased Chrome Ore production resulted in ramping up of production of the Alloy. Tata Steel had finalized a conversion agreement with three companies namely Tirumala Balaji Pvt. Ltd., Aarti Steels Ltd. and Nava Bharat Ventures Ltd. for conversion of chrome ore into ferro chrome. Conversion agreement has been a beneficial step as it has enabled maximum utilization of raw material resources and thus ferro chrome production has boosted up significantly.
Also, 55,000 M.T p.a of ferro chrome is expected to be operational in Gopalpur ferro chrome plant by the end of the Q1 FY17.
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