India’s iron ore stocks position stood at 60-61 million tons at the mine heads in Odisha, an official from an iron ore mining firm told ISMW.
“The state government is keeping a close watch on the production levels of the miners and those who are producing less are being penalised,” the official said.
“This has led to constant production despite demand remaining subdued,” he said.
With mines re-opening after clarity over the MMDR Act, production is bound to increase, the official said.
The state is set to produce 85-90 million tons of iron ore in FY17 as against 55-60 mt in FY16.
“With steel demand set to increase, iron ore consumption will also pick up during the year, resulting in a fall in stock positions going forward,” he said.
Currently, iron ore lumps of 62% Fe grade are priced at Rs 2,600 per ton and Rs 1,350 per ton in the Koira region of Odisha, he added.