India: Chrome Ore Production Crosses 4 MnT in CY17
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Indian chrome ore production has been witnessing an upward trend, where its CAGR since 2014 stands at 22%.
India produced 4.3 MnT Chrome Ore in CY17 witnessing an increase of 8% Y-o-Y as it was 3.97 MnT in CY16.
Reasons for Increase in Production:
Odisha contributes almost entirely towards chrome ore production in India. Chrome ore production in Odisha has been recorded at 1.17 MnT in CY17 by captive miners against 1.14 MnT in CY16, witnessing a marginal increase of 3% Y-o-Y. While merchant miners produced 3.05 MnT in CY17 against 2.84 MnT in CY16, recording an increase of 7% Y-o-Y.
TATA Steel is the largest producer of Chrome Ore in India contributing more than 50% to the total production by merchant miners and 40% in total production in CY17. Tata Steel produced around 1.8 MnT in CY17 against 1.64 MnT in CY16 witnessing an increase of 10% Y-o-Y. Merchant miners have the added incentive to mine as Merchant mines are set to go in for reauction in 2020.
However, OMC being the second largest producer, witnessed a slight decline in its production in CY17 by 7% Y-o-Y.
| Mine Name | 2016 | 2017 | Change |
| Captive Miners | |||
| Jindal Stainless | 0.10 | 0.09 | -7% |
| FACOR | 0.23 | 0.18 | -23% |
| IMFA | 0.44 | 0.47 | 7% |
| IDICOL | 0.07 | 0.08 | 9% |
| Balasore Alloys | 0.37 | 0.36 | -1% |
| Other Than Captive | |||
| TATA Steel | 1.64 | 1.81 | 11% |
| B.C. Mohanty & Sons | 0.17 | 0.15 | -13% |
| O.M.C. | 0.94 | 0.87 | -7% |
| Saruabil Chromite Mines | 0.01 | 0.21 | 1497% |
| Total | 3.97 | 4.22 | 6% |
What May Happen in 2018?
India has been witnessing an uptrend in Chrome Ore production but the same has been restricted by Odisha government by penalizing them, as the miners had been producing excess by indulging in over-mining.
Chromite ore leaseholders have been asked to pay Rs 3,200 crore equivalent to USD 500 million, in compensation for extracting excess ore beyond the limits set. Orissa Mining Corporation (OMC) is burdened with INR 1,600 crore penalty, nearly half of the demand amount. Notices have also been dispatched to other miners as well.
