Mineral production in the month of July 2013
Indian Bureau of Mines released a provisional data for the mineral production in the month of July 2013. Mineral production index of mining and quarrying sector rose by 0.1% as compare to June 2013. Total value of production in the month of July 2013 was INR 166.41 billion. Petroleum production contributed maximum to the index at INR 58.04 billion (35%) followed by Coal at INR 48.99 billion (30%) and following coal was Iron ore at INR 24.72 billions (15%).
Coal production in July 13 continued to be the highest at about 39.9 million tonnes, followed by limestone at 23.5 million tonnes and Iron ore at about 11.9 million tonnes. Petroleum production was about 3.2 million tonnes as compared to its previous month production at about 3.1 million tonnes. Production of Gold showed declined this month to 97 Kg. as compare to 125 Kg. for June, 2013.
We compared the increase/ decrease in mineral output for the month of July 13 to June 13 & July 12. In the month of July 13, Bauxite production increased all the way by 38.3% compared to preceding month. The reason could be the artificial market condition which was created to depict low availability of Bauxite ores. Chromite Ore ascend by 51.9% from previous month but for July 2013, it slid to 11.9%. Iron ore with restriction on mining was able to perform little better in the July when it rose by 2.6%. But the overall market for Iron ore is cold for this year so far. Although the amount of coal production is highest among all minerals, but since last year it has shown declines. For the month of July, it declined by 0.8%, and 5.9% in the preceding month.
The overall value of production showed a consistent progress till the month of March when it valued INR 204.75 billion. But within 4 months of time its value came down to INR 166.41 billion. There can be many reasons for value erosion such as depreciating rupee, mining bans imposed on Iron ore, Bauxite and many other critical minerals. The market uncertainty continues to be a shock for this year as it has seen one of deepest falls (INR vs Dollar) and highest rises (Bauxite output). Only time can tell if the turmoil will stop, but the mining and production houses need to be well prepared for any upcoming atrocities.