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| NMDC exceeds production target for 2008-09 |
| Press Trust of India / New Delhi Apr 07, 2009, 14:38 IST |
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State-run mining giant NMDC has surpassed the production target set by the government for 2008-09 even as its sales volumes dipped over six per cent amid reduced intake by the steel sector, a top official said.
As against the MoU (memorandum of understanding) target of 28.4 million tonnes for the fiscal that just ended, the Navratna PSU produced 28.9 million tonnes of iron ore, Steel Secretary P K Rastogi told PTI.
"Despite the gloomy scenario of iron ore for three to four months starting August last year, NMDC managed to do well in terms of production," he said.
Even as the company marginally exceeded the MoU target, its production dipped by about five per cent to 28.4 million tonnes compared to 29.8 million tonnes in the year-ago period.
Sales too declined by 6.43 per cent to 26.4 million tonnes as against 28.1 million tonnes, primarily because steel companies like Essar, JSW and RINL reduced the offtake of iron ore in the third quarter of the fiscal amid a slump in demand.
In terms of exports, the country's largest iron ore producer shipped 3.87 million tonnes of the mineral. Of this, nearly three million tonnes was supplied to the Japanese and South Korean steel mills on long-term contracts while the rest to Chinese buyers on spot prices.
"In 2008-09, there was tremendous opportunity for exports by NMDC, but as a company it discouraged it and preferred selling more for domestic consumption," Rastogi said.
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