India: Odisha Iron Ore Production Increase 9% in Feb'20 as Sarda Mines Resume Production

Odisha - India's largest iron ore producing state recorded production at 15.31 MnT up 9%, as against 14.05 MnT in Jan'20, according to the provisional data of Odisha Govt. maintained by SteelMint. The figures include the type of material - fines, lump, and concentrate. Few major miners had already finished their EC limit, rendering limited production.

Sarda mines recorded production at 2.37 MnT for the month (Feb'20). Supreme Court as on 30th Jan 2020 allowed Sarda mines to resume operations. Apex court allowed on the condition to pay dues (INR 933 crore) towards environmental compensation to Odisha Govt. by 29 Feb'20, as reported by PTI. The honorable court also made it clear that JSPL can transport iron ore lying at Sarda mines only after Sarda pays INR 933 crore towards compensation for the environment.

Rungta Mines - India's largest private merchant miner produced 2.58 MnT iron ore in Feb'20. The production recorded fall of 20% as compared to 3.21 MnT a month ago in Jan'20.

Essel Mining and Industries iron ore production for the month stood at 1.69 MnT, down against 1.73 MnT a month ago. The miner has been continuously increasing its production at its Jilling Langalota mines after it received permission from Supreme Court in Feb'18.

Serajuddin mines production recorded 13% drop to 1.55 MnT in Feb'20 as compared to 1.78 MnT in Jan'20. Serajuddin mine produces around 10 MnT iron ore annually and has an EC limit of 15.15 MnT p.a. In the Odisha block auction, the miner retained its Balda block at a premium of 118.05%.

Tata Steel output for the month recorded at 1.30 MnT (down 17% M-o-M) and SAIL at 1.07 MnT (up 6% on monthly basis).

As per the reliable sources report to SteelMint, there is a slow-down in placing of new orders since Feb'20, as the buyers are reluctant to place any fresh orders for the delivery of material by 31st Mar 2020. As few existing miners will see the change of hands after auctions conducted. Following this logistic cost via truck has also been increased as per the sources. Besides, the pandemic Coronavirus outbreak has affected the mining activities in India amid 21 days lockdown.

Odisha Mine-wise Iron Ore Production: Feb'20 vs Jan'20

Source: Govt. of Odisha
Provisional data including fines, lump & concentrate
Quantity in MnT