Production in FY15 was estimated at 125 MnT. Of this, Odisha was the major contributor with 48 MnT, followed by Chhattisgarh with 31 MnT. Other states like Jharkhand and Karnataka had produced about 17 MnT and 21 MnT respectively in the same duration.
Why Production will Increase?
Let’s figured out the reasons behind surge in iron ore production.
The recent amended MMDR (Mines and Minerals Development and Regulation) act has given an extension of 5 years and 15 years for merchant and captive miners respectively, who have leases 50 years old and called illegal by the apex court. This amendment in MMDR act may lead to surge in iron ore production.
In addition, provision will help resume mining in Odisha. Thus, production is expected to touch 65 MnT in current financial year.
Increased Production from Karanataka and Goa
Production from Karnataka and Goa is likely to go up this financial year. More B category mines in Karnataka will start operations. Production may ramp up to 24-25 MnT in FY16, which was 21 MnT in FY15.
Besides, Goa will start production only towards the second half of this financial year. If all goes well, Goa could produce about 5 MnT.
Increased Production from NMDC
NMDC (National Mineral Development Corporation), India’s largest and state owned miner, has recently given a guidance of 35 MnT production in FY16 against 31 MnT in FY15.
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