Indian Economy News

Iron ore output set to go up 9%

Bhubaneswar: Indian Bureau of Mines has estimated the country’s iron ore production at 210 million tonnes (mt) in the current financial year, 9 per cent more than the previous one.

The projection has relieved the steel industry, jittery over disruption of mining operations in Odisha and Goa during the year and its subsequent impact on prices.

Last year, Odisha had produced 102 mt of iron ore, 53 per cent of the country’s total output of 192 mt. It is poised to retain the top slot this year.

By the end of last week, the state had produced 99 mt, about 2 mt more than the output achieved in the comparable period last year, said an official source.

A couple of months ago, closure of some large mines in Odisha for non-payment of the Supreme Court-imposed compensation for illegal mining, contravening environment and forest approvals had raised the spectre of supply deficit and pushed up ore prices. Between October 2017 and January 2018, it had moved up 60 per cent.

But, most of these mines have since been allowed to restart operation, after paying the compensation amount. In addition, a large mine of Aditya Birla group-owned Essel Mining, shut for the four years on regulatory issues, has been permitted to reopen. Together, 25 mt of iron ore capacity has been restored in the state over the past couple of weeks.

“The miners in Odisha have EC (environment clearance) for 142 mt iron ore production annually. So, there is further scope to ramp up production in a conducive market condition,” said an official of a mining company.

The Supreme Court in December relaxed the annual cap on iron ore excavation by Category A and B mines in Karnataka from 30 mt to 35 mt.

In contrast, the apex court ordered cancellation of renewed leases of 88 mines in Goa, bringing to halt all iron ore extraction activity in the state from Wednesday. It is unlikely to have much impact on overall output in the current financial year, said an analyst.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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