India: NMDC Iron Ore Production Down 23% in Jul'19

NMDC - India's largest iron ore producer recorded production of 1.95 MnT in Jul'19, down 23% as against 2.52 MnT in Jun'19. However, on yearly basis production moved up by 37% as against 1.42 MnT in Jul'18.

Production from its Chhattisgarh mines also witnessed declined by 31% M-o-M at 1.16 MnT, the output from Karnataka also down for the month by 7% to 0.79 MnT. Owing to the seasonal effect of monsoons, production and dispatches from the mines have come down.

NMDC's production for FY 20 (Apr-Jul'19) recorded at 10.37 MnT, up 24% compared to 8.39 MnT in FY19 (Apr-Jul'18).

NMDC sales down 9% in Jul'19

NMDC registered 9% decreased in sales for the month of Jul'19 at 2.41 MnT as against 2.66 MnT a month ago. The miner has rolled over prices for Aug'19 deliveries. Prior to this, the miner had also kept the prices unchanged. Out of the total sales, 1.6 MnT sales were from Chhattisgarh mines (down 11% M-o-M), and remaining 0.81 from Karnataka mines (down 6% on monthly basis). However, on yearly basis, total sales recorded rise of 24% compared to 1.94 MnT in Jul'18.

Qty in MnT
Source: SteelMint Research & Company Reports

In accordance with the decision of Hon'ble High Court on NMDC's Donimalai mines received in July, NMDC is in process of getting the other clearances done like Forest clearances and Environment Clearance etc. Thus at this point of time, due to the flood-like situation in Karnataka has slightly delayed the process of renewal and clearance, therefore, no fixed timeline has been revealed regarding the resumption of operations at Donimalai mines.