Iron ore output beats ban blues, surges 27% to 154 million tonnes

Output had nosedived 9.4% between 2012-16 after mining ban in 3 states, which has since been lifted

India's iron ore output surged 27 per cent to 154.48 million tonnes during April-January of this fiscal following lifting of the mining ban.

It stood at 122 million tonnes in the same period of 2015-16.

"The country's iron ore production has increased significantly to 154.48 million tonnes during April-January of 2016-17. The percentage increase is 26.63 per cent while in value terms, the increase is 7.79 per cent," Mines Secretary Arun Kumar said.

The total value of the ore produced during the 10 months stood at Rs 19,417 crore.

Iron ore output had nosedived with an average annual contraction of 9.4 per cent in 2012-16 following the mining ban in the three largest iron-ore producing states -- Goa, Odisha and Karnataka -- which has since been lifted.

Mining player Vedanta had recently said the worst phase for the domestic iron ore industry was over and exuded confidence that its Goa arm was prepared to sustain the export momentum amid softening global prices and subdued demand.

A Fitch arm last month said the country's iron ore output is projected to grow to 185 million tonnes in the next four years.

"We forecast India's iron ore output to grow from 136 million tonnes in 2017 to 185 million tonnes in 2021," said BMI Research, a unit of Fitch Group.

Iron ore shipments handled by the country's 12 major ports had soared 169 per cent to 38.61 million tonnes in April-January of this fiscal. These government-owned ports had handled 14.37 million tonnes of the key steel-making raw material in the year-earlier period.

The Indian Ports Association (IPA), which maintains data on cargo handled by these 12 ports, in its recent report said iron ore handling was higher by 168.59 per cent in the first 10 months of the current fiscal.

According to IPA, iron ore handling at the Mormugao port during the 10 months went up to 11.18 million tonnes, from 2.29 million tonnes a year ago, while the Visakhapatnam port saw a handling of 9.17 million tonnes as against 4.39 million tonnes.

In the Paradip Port, iron ore cargo came in higher at 8.51 million tonnes as against 2.27 million tonnes a year ago.

India has 12 major ports -- Kandla, Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia), which handle approximately 61 per cent of the country's total cargo traffic.