India: NMDC's Iron Ore Production from Karnataka Drops in Nov'18 Amidst Suspension at Donimalai Mines

NMDC - India's largest iron ore mine production from Karnataka mines recorded at 0.69 MnT, down 38% on monthly basis as against 1.12 MnT in Oct'18.

Towards the beginning of Nov'18, lease validity of NMDC's Donimalai iron ore mines in Karnataka ended following which operations at these mines were put to halt. However, Donimalai iron ore mines lease has been extended by the Cabinet of Karnataka Govt. w.e.f 04.11.2018 for the 20 years. But, amid pending decision on the representation by the Karnataka govt, iron ore production continued to remain temporarily suspended. NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.

The production from NMDC, Chhattisgarh mines recorded at 2.6 MnT, up 21% as against 2.14 MnT in Oct'18.

NMDC's total iron ore production for the month of Nov'18 was recorded at 3.29 MnT, as against 3.26 MnT in Oct'17. On monthly basis, it witnessed 25% rise as against 2.63 MnT in Nov'17.

During Apr-Nov'18,, the total production witnessed at 18.76 MnT, down 10% as against 20.86 MnT in last fiscal (Apr'17- Nov'17). Out of the total 18.76 MnT, Bailadila mines contributed 65% of production at 12.24 MnT while remaining contributed by Karnataka mines at 6.52 MnT.

NMDC iron ore sales down 13% in Nov'18

NMDC recorded total iron ore sales at 2.75 MnT, down 13% as against 3.15 MnT in Oct'18. On yearly basis, iron ore sales depicted 5% increase as against Nov'17 sales which was at 2.61 MnT.

The total sales from NMDC, Bailadila mines for the month recorded at 2.06 MnT, down slightly M-o-M against 2.12 MnT in previous month. Company rolled over prices for NMDC, Chhattisgarh towards Oct end and prices remained unchanged throughout the month of Nov'18.

The sales from NMDC Karnataka mines recorded at 0.69 MnT, down 33% as against 1.03 MnT a month ago.

For the duration Apr'18-Nov'18, the total sales depicted decline of 14% to 19.3 MnT as compared to 22.41 MnT for same duration last fiscal (Apr'17-Nov'17). Out of the total sales of 19.3 MnT in FY'19, 13.78 MnT contributed by Bailadila mines and remaining was contributed by Karnataka e-auction at 5.52 MnT.