India's iron ore production hits 10-year high

The country's iron ore production rose to a decade-record level of 220 million tonnes in fiscal 2019, up 9.5% year on year from 201 million tonnes in fiscal 2018.

Analysts are betting on the ongoing growth in ore mining this fiscal year. Their positive sentiment comes from merchant miners looking to speed up production from mines that will expire on March 31, 2020.

“We believe that iron ore production will grow by 5-8 percent in this financial. Trading miners whose leases expire by March 31, 2020 will seek to increase production. On the import side, we expect moderation during fiscal year 20. On the contrary, exports should increase for iron ore pellets, ”said Vahishta M Unvalla, Analyst (Iron Ore), CARE Ratings.

Merchant miners strive to maximize productivity and generate up to approved environmental clean-up limits.

According to the report of the committee under the Ministry of Mines of the Union, by March 31, 2020, due to the expiration of 334 contracts of sale or lease in captivity, there will be of them. Of these, only 49 are in operation - 33 of them work in the iron ore mines in Odisha. with an annual production capacity of 55 million tons. Mining companies with accelerated development are also reflected in FY18. This phenomenon was startlingly seen in Odisha - the state produced 118 tons of iron ore and sent even 140 tons higher.

“During this financial period, iron ore production will grow by 8 percent. We expect a surge in production from miners whose mines will no longer be operational after the end of this fiscal year. Moreover, traders-miners will be able to ship ore even six months after the lease expires, ”said a source at the Pellet Producers Association of India (PMAI).

Indian iron ore producers will also benefit from tailwinds. Research by CARE Ratings shows that skyrocketing global maritime iron ore prices will support demand in the country.

“The recent interruptions in the supply of iron ore due to the collapse of the Valais Dam resulted in a shortage of 60-70 million tonnes worldwide. Demand for domestically produced iron ore is expected to rise due to higher world prices. This will keep domestic prices at a high level throughout the year, ”the message says.

As the demand for iron ore pellets of Indian origin grows in world markets, this will lead to an increase in production at home. “Domestic pellet production is expected to grow with increasing demand in the domestic market as well as worldwide, especially in China. Export volume will be