India’s iron ore production in 2015-16 is likely to be around 145-150 million tons, an official at an iron ore mining firm told ISMW.
Out of the total production, Odisha’s share of production is likely to be 55-60 mt in FY16, the official said.
Iron ore production is on an upswing as many mines have started operating after a few years of suspension, following the Supreme Court orders.
The industry official pegged ore production in FY17 at 185-190 mt.
“Robust buying by China and revival in steel demand after the fixation of minimum import price would escalate production,” he said.
Presently, China imports around 80% of its iron ore requirement, compared with 70% two years earlier. It imported 935 mt of iron ore in 2015. China’s demand revived recently after a lull of over a year.
Odisha, the biggest iron ore producer, has seen the sharpest jump in output to around 60 mt in FY16 from 47 mt in FY15, when some of its key mines had to shut production after orders. Ore production may go up in the state with the court clearing the decks for restarting 102 more mines, freeing up to 35 mt output.
In Goa, where production was 5 mt in 2015-16, following lifting of the export duty on low grade ore, the figure could go up to 30 mt.
Karnataka and Chhattisgarh recorded 25 mt production in 2015-16.
“Around 10 mines in Karnataka have got orders for expansion which will increase production,” said the official.
Major growth is set to come from NMDC. In FY17, NMDC’s production may move up 12-13%. Also, Steel Authority of India Ltd and private players like Tata Steel are going to ramp up captive production to feed their steel units, the official said.
Year |
Iron ore production in million tons |
2010-11 |
207 |
2011-12 |
167 |
2012-13 |
136 |
2013-14 |
152 |
2014-15 |
129 |
2015-16 |
145-150 |
2016-17 |
185-190 |
Source: ISMW research