India iron ore output likely to be sufficient to meet demand

Total iron ore production from Odisha is likely to be in the region of 110 mt in 2020-21, a shortfall of around 31 percent.

India’s iron ore production is likely to be in the region of around 200 million tons (mt) in 2020-21. In the previous fiscal of 2019-20 production was estimated at around 244 mt, according to industry experts.

Odisha supplies

Total iron ore production from Odisha is likely to be in the region of 110 mt in 202021, a shortfall of around 31 percent. Odisha’s production was estimated to be in the region of around 144 mt in 2019-20.

Delay in restarting of the auctioned mines in FY21 and excess production in the January and February period of FY20 from the mines, which were put up for auction, led to the variance in the production pattern.

Disruption in mining activity due to Covid-19 pandemic, slow restarting of the auctioned iron ore leases and the fact that these leases are yet to attain optimum production levels led to the fall in numbers from Odisha, said an industry source.

However, the supplies have improved from Odisha with production likely to be around 11-12 million tons towards the end of the last fiscal.

Meanwhile, some leading merchant miners have exhausted their annual Environmental Clearance limits which have put additional pressure on iron ore supplies from the state.

This could account for some dip in production in the current fiscal. However, operationalisation of most of auctioned leases by state PSU miner OMC is likely to cover up for any deficit thus caused.

Moreover, allocation of significant quantities from these mines at OMC auctions point to speedy dispatch of iron ore from these leases. Thus, Odisha’s share in total production is projected to stay over 50 percent in FY21.

Karnataka output

Karnataka is expected to record production of 35 mt in FY21.