Iron ore production dips 11% in 2013

Don't want to miss the best from Business Standard?

India’s iron ore production from January to December in 2013 registered a decline of 11 per cent to 136 million tonnes (mt) compared to 152.6 mt a year ago, provisional figures with the mines’ ministry said. The production in January-December 2011 was 192 million tonnes.

The decline was mainly due to no mining in Goa and the delay in the resumption of mines in Karnataka. The latter produced 16 mt in 2013.

Andhra Pradesh production saw a 30 per cent decline as the state had stopped production in some mines. Odisha produced the most, 62 mt and Jharkhand 17 mt.  In 2013, the highest production was in May (13 mt), followed by December's at 12.4 mt.

In Karnataka, the production had started in 24 mines (16 in Category A, eight in B), capacity, 10 mt. The NMDC is producing with two leases (annual capacity, 12 mt). However, the production is nine mt a year.

“The outlook for 2014 will be much better than 2013's as we expect the production to cross 150 mt. If the Supreme Court allows resumption of mining in Goa, the production could be a little higher. However, production could start only after monsoon and might put out six-seven mt in the last quarter of 2014,” said Prakash Duvvuri, head of research, OreTeam.

During 2013, exports were 15 mt, 11 per cent of the production. From April to January, Odisha exported eight mt, data compiled by OreTeam showed.

With pellet exports seeing a slowdown following the imposition of a five per cent duty, total exports of ore are likely to be impacted. However, the ore from Goa could make up for the loss, Duvvuri said.