India’s iron ore production and exports in the year 2013 has degraded gradually owing to the imposed bans and increased excise duty.
Iron ore production in India is about 136.1 MnT Iron ore in 2013 which is less by 16.5 MnT compared to 152.6 MnT productions in 2012. The country’s exports had also declined by 52.5 percent to 14.1 MnT in 2013 as compared to 29.7 MnT in 2012. India’s production had touched the highest of 15.8 MnT in May, 12 while the highest in 2013 was only about 13.1 MnT during same period.
The country’s major iron ore producing states are Chhattisgarh, Odisha, Karnataka, Goa and Jharkhand. Since, ban imposed in Karnataka and Goa by the Apex Court during Sept, 12 the productions had declined in the country. Though, Supreme Court had lifted the ban later on with some limitations on the production volume from the states. Yet, the mining sector did not recover properly in these two states thereafter.
Recent permissions for E-Auctions of about 0.53 MnT of Iron ore from Goa also didn’t bring favorable results as all Indian steel behemoths skipped their participation in the auctions. The largest buyer in the auction was Radiant World, a Mumbai based Iron ore trader followed by Sesa Sterlite, Bagadiya Brothers, Timblo and Fermento.
India still has to cover a long path to regain its position in Iron ore productions. Most of the miners are planning to restart operations by 2014 giving new hopes to the country. It is likely that by FY15 the iron ore production will grow to about 150 MnT and reach beyond the 165 MnT volumes by FY16.