The slog over rush of Iron ore mining

India iron ore output seen at 9-year high before leases expire

This is like the run rush in the slog overs in a T20 match. Even as the leases for iron ore is set to expire next year the mining companies are all set to produce a record high of Iron ore.

India is all set to produce 210 million metric tonnes in the year ending March 31. This was disclosed by R.K.Sharma who is the Secretary General at the Federation of Indian Mineral industries.

A country that is maturing as a industrial nation needs that regular supply of iron and steel. The infrastructure projects are still on in full swing. The country demands more and more steel and the producers are working towards that demand. They are ramping up the production and trying to hit peak performance before the leases expire in 2020.

What happens after the expiry of leases will be anyones guess. Will the government, that has not been very charitable to mining so far, act quickly and renew or will they rely on imports from other countries. The second option cannot be ruled out considering what the governement has done with regard to the mineral mining industry with the ban of mineral mining and importing of Titanium Di Oxide after ignoring the rich deposits of that mineral in our shoreline

The make in India promise needs an impetus from all directions. And India cannot rely on importing anything that it has.

India in 2015 embraced competitive auctions as the best long-term approach to clamp down on corruption after bruising scandals over discretionary or free allotments of mines. The Indian Bureau of Mines has compiled a list of 288 iron ore, bauxite, limestone and manganese mines whose permits expire in March 2020 and the government has asked states to start auctions for these by July 1, 2019.

Rising imports
Global companies including Fortescue Metals Group Ltd. are keeping an eye on India’s growing potential as a rising consumer of the mineral. Lack of adequate logistics has meant that steel mills in India, set to emerge as the biggest producer of the metal after China, have increasingly been relying on overseas supplies of the raw material.


Global companies including Fortescue Metals Group Ltd. are keeping an eye on India’s growing potential as a rising consumer of the mineral. Lack of adequate logistics has meant that steel mills in India, set to emerge as the biggest producer of the metal after China, have increasingly been relying on overseas supplies of the raw material.

Imports in the eight months to November more than doubled to 10 million tons from a year earlier, surpassing the 8.7 million tons bought in 2017-18, according to the nation’s trade ministry. That’s shy of the record 12 million tons shipped in 2014-15.

India could be a “big story” for steel and iron ore this year with the rise in imports in 2018 being the start of a long-term structural trend rather than a one-off blip, Wood Mackenzie Ltd. said in a Jan. 16 emailed note. By 2030, the country could ship in over 100 million tons a year of the ore and could potentially double annual imports in the subsequent decade, it said in October.

The import figures are too small to be a cause of concern and the rise was mainly due to one company, Mines Secretary Anil Mukim said last week. India’s biggest steel mill JSW Steel Ltd. imported some iron ore for its Karnataka plant in the last few months after access to supplies from NMDC Ltd.’s Donimalai mine was curtailed.

“It’s a shame if we say that we are importing iron ore. It’s like selling ice to the eskimos,” said Dilip Oommen, managing director at Essar Steel India Ltd., who estimates India’s iron ore requirement at 500 million tons if steelmaking capacity is enhanced to 300 million tons by 2030. “There is no reason why we should not produce that domestically.”

Leave a Reply

Your email address will not be published. Required fields are marked *