NMDC: Iron Ore Production Up 4%; Sales Rise 10% in Jan19

NMDC - India's largest iron ore mine production recorded at 3.22 MnT in Jan'19, up 4% as against 3.1 MnT in Dec'18. On yearly basis, the production dropped 12% as against 3.64 MnT in Jan'18.

Out of the total 3.22 MnT, Bailadila mines contributed 78% of total production at 2.52 MnT, up 7% on monthly basis as against 2.36 MnT in Dec'18. Production from Karnataka mines dropped 5% in Jan19 to 0.7 MnT as compared to 0.74 MnT a month ago.

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 by High Court iron ore production continued to remain temporarily suspended with next hearing scheduled on 25th Feb.

NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.

For FY19 (Apr-Jan), the total production dropped 10% on yearly basis to 25.09 MnT as against 27.87 MnT in the same period last fiscal FY18.

NMDC iron ore sales from Karnataka mines up 42% amid price drop

The sales from NMDC Karnataka mines for Jan19 recorded at 0.95 MnT, up 42% as against 0.67 MnT in Dec18. NMDC Kumaraswamy had decreased prices by around INR 320-330/MT in fines and INR 340--350/MT for lumps in Jan'19.

The sales from Bailadila mines stood almost stable on monthly basis at 2.16 MnT. However, towards the beginning of Jan19 NMDC, Chhattisgarh had reduced the iron ore prices by INR 300-465/MT.

NMDC recorded total iron ore sales at 3.11 MnT in Jan19, up 10% as against 2.84 MnT in Dec18. On yearly basis, sales declined 4% as compared to 3.25 MnT in Jan18.

For FY19(Apr-Jan) the total sales witnessed at 25.25 MnT as against 28.89 MnT in the same period last fiscal FY18 (Apr-Jan). Out of total sales 25.25 MnT, 18.11 MnT stood from Chhattisgarh and remaining 7.14 MnT from Karnataka mines.