India: NMDC Iron Ore Production Up 4%; Sales Up 14% in Feb'19

NMDC's iron ore production stood at 28.43 MnT during Apr'18-Feb'19, down 9% Y-o-Y.

NMDC - India's largest iron ore mine production recorded at 3.34 MnT in Feb'19, up 4% as against 3.22 MnT in Jan'19. On yearly basis, the production dropped 3% as against 3.45 MnT in Feb'18.

Out of the total 3.34 MnT, Bailadila mines contributed 81% of total production at 2.69 MnT, up 7% on monthly basis as against 2.52 MnT in Jan'19. Production from Karnataka mines dropped 7% in Feb'19 to 0.65 MnT as compared to 0.7 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. On 27th Feb, NMDC Donimalai case was heard by the Karnataka High Court and it reserved the judgement till next hearing. Hence, amid pending decision by High Court iron ore production continued to remain temporarily suspended at mines.

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

For FY19 (Apr-Feb), the total production dropped 9% on yearly basis to 28.43 MnT as against 31.32 MnT in the same period last fiscal FY18.

NMDC iron ore sales up 37% from Karnataka mines

The sales from NMDC Karnataka mines for Feb'19 recorded at 1.3 MnT, up sharply by 37% as against 0.95 MnT in Jan'19. NMDC Kumaraswamy had decreased prices by around INR 150/MT in fines and INR 300/MT for lumps for Feb'19 deliveries. However, the miner increased prices by INR 400/MT each in fines and lumps towards end of the month.

The sales from Bailadila mines increased 4% on monthly basis to 2.25 MnT, against 2.16 MnT a month ago. The miner had decreased the prices by 11% in beginning of Feb'19. However, on 23rd Feb'19, the miner raised prices upto INR 490/MT.

NMDC recorded total iron ore sales at 3.55 MnT in Feb'19, up 14% as against 3.11 MnT in Jan'19. On yearly basis, sales increased 17% as compared to 3.03 MnT in Feb'18.

For FY19 (Apr-Feb) the total sales witnessed at 28.80 MnT, down 10% as against 31.92 MnT in the same period last fiscal FY18 (Apr-Feb).