NMDC: Iron Ore Sales Up 37%; Production Surge 52% in Oct'19

NMDC- India's largest iron ore producer registered iron ore sales at 2.61 MnT for the month of Oct'19, up 37% as compared to 1.91 MnT in Sep'19. Sales from Chhattisgarh mines witnessed at 2.02 MnT (up 51% M-o-M) and sales from Karnataka mines at 0.59 MnT, up 4% on monthly basis.

NMDC iron ore sales recorded increase for the month. The miner on 19th Sep slashed iron ore lumps and fines prices by INR 200/MT and DRCLO by INR 230/MT from Chhattisgarh mines, and towards Sep'19 end prices from Karnataka mines reduced by INR 300/MT in both fines and lumps. Also easing iron ore production after monsoons resulted in improved dispatches. Chhattisgarh based and outside Chhattisgarh based units increased iron ore sourcing sharply last month from NMDC's CG mines.

On yearly basis, sales have dropped 15% as against 3.06 MnT in Oct'18.

NMDC iron ore production picked up in Oct'19

NMDC registered 52% increase in production for the month of Oct'19 to 2.49 MnT as against 1.64 MnT Sep'19. Production from Chhattisgarh mines picked up significantly by 84% M-o-M to 1.93 MnT, while it dropped by 5% from Karnataka mines to 0.56 MnT. On yearly basis, production fell sharply by 23% as compared to 3.23 MnT in Oct'18.

Ministry of Mines has made a recent development in MMDR Amendment Act to get the issue of NMDC Donimalai case resolved and grant renewal of it. The Central Government has made renewal of mining leases of public sector companies mandatory without going through the auction process. The amendment paves way for renewal of NMDC Donimalai mines where operation was suspended after lease expiry in Nov'18.

Source-: BSE filings, SteelMint Research
Qty in MnT