Indian Iron Ore Production Crossed 200 MnT in CY'17
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According to data released by Indian Bureau of Mines, in the year CY'17 Indian iron ore production achieved remarkable increase. India has produced 201.8 MnT in CY'17 up by 9% against 184.5 MnT in CY'16.
A significant increase in iron ore production volumes was recorded from states like Chhattisgarh, Odisha Goa, and Karnataka.
Reason for increased iron ore production in CY'17-
1. Odisha's major mines increased production-: India's largest private merchant iron ore miner- Rungta Mines increased production by 13% to 24.53 MnT in CY'17 against 21.74 MnT in CY'16. Serajuddin Mines' production increased by 16% to 11.48 MnT in CY'17 against 9.89 MnT in CY'16. Odisha contributed around 52% of total iron ore produced in India, raised its iron ore production by from 97.9MnT in CY'16 to 104.7 MnT in CY'17.
2. NMDC increased iron ore production sharply- India's largest iron ore producer - NMDC has increased iron ore production from its Karnataka mines by 2% in CY'17 to 12.29 MnT against 12 MnT in CY'16. In Chhattisgarh, NMDC's iron ore production has increased by 12% from about 19.9MnT in CY'16 to 22.37 MnT in CY'17. In the year CY'17, NMDC's iron ore output climbed around 9% to 34.63 MnT against 31.87 MnT in CY'16.
3. Goa iron ore production increased significantly in CY'17-: Goa iron ore production increased sharply by 56% to 8.6 MnT in CY'17 against 5.5 MnT in CY'16.
State-wise iron ore Production for CY17 Vs. CY'16-:
| States | 2017 | 2016 | Y-o-Y(%) |
| Odisha | 104.7 | 97.9 | 7% |
| Chhattisgarh | 32.8 | 28.8 | 14% |
| Karnataka | 29.1 | 26.4 | 10% |
| Jharkhand | 21.6 | 21.1 | 2% |
| Goa | 8.6 | 5.5 | 56% |
| Madhya Pradesh | 1.9 | 1.8 | 6% |
| Rajasthan | 1.4 | 1.1 | 27% |
| Maharashtra | 1.1 | 1.4 | -21% |
| Andhra Pradesh | 0.6 | 0.4 | 50% |
| Grand Total | 201.8 | 184.5 | 9% |
Qty In MnT
Source-SteelMint Research
What may happen in 2018?
1. As Apex court in Karnataka allowed to increase iron ore excavation cap from 30 MnT to 35MnT may increase production from the miners in the FY'19. Also, the Category "C" iron ore mine blocks in the state will add up to state's production.
2. With few Odisha mines like Essel (Jilling) and RP Sao asked to resume operations, state's iron ore production may augment as they have a total capacity of around 12 MnT pa.
3. However with SC canceling 88 iron ore mining leases in Goa, iron ore production from the state may remain disrupted.
