Indian Iron Ore Production Hit A Seven-year High

- May 11, 2018 -

India's annual iron ore output for 2017/18 reached 210 million tonnes, hitting a near-seven-year high, but the high levels of low-grade ore and powder mines have brought serious challenges to the country's mining industry.


Indian officials have not specific production data statistics of the 2017/18 fiscal year, but the mining industry representative organization estimate that iron ore production of 210 million tons, more than 2011 years before the 200 million tons of high, India's Supreme Court had not yet been banning illegal mining.


Mining industry officials said earlier this year, goa region field due to a court order to shut down again, the 2017/18 fiscal year new production of iron ore mainly from India's orissa state (Odisha) and Karnataka (state) of the two area rich in ore.


Orissa, which typically accounts for 50 per cent of India's total iron ore production, has an annual output of 105m tonnes in 2017/18, up from about 3m tonnes in the previous fiscal year.


Although karnataka data has not been announced, but officials said, as the Supreme Court of mining loose, the region a few early closed began to put into production in mines, for 2017/2018 of the annual iron ore production made important contributions to a seven-year high.


However, according to three miners in eastern India industry evaluation, while iron ore output hit a record high, but not in the past few years of selling low grade iron ore accumulation for a long time in the national each big pithead heap-leaching mining area, and in the 2017/18 fiscal year climbed to 150 million tons of peak, more than 148 million tons at the end of the last fiscal year.


Because there have been no export transactions in the past few months, most of the low-grade iron ore, which contains between 58 and 62 per cent of the iron content, is piled up in pits in Jharkhand and orissa.For technical reasons, India is not yet able to use low-grade iron ore in blast furnaces.


At the same time, most international buyers, mainly Chinese steel mills, purchase high-grade ore, which is extremely low for low-grade Indian powder.At the mine pits in orissa and jharkhand, nearly 85% of low-grade iron ore deposits have piled up.

Chinese steel mills basic refused all the purchasing agent of low grade iron ore powder ore offer, two miners from orissa, said India will to petition the government for mining association, demanded that the government abolished for iron content is between 58% and 62% of low-grade iron ore export tax of 30%, the miners could by slashing price low to reduce product inventory.At present, the export tariff only targets iron ore content less than 58 percent iron ore.


The two Indian miners said the orissa mine could produce 30 million tonnes of iron ore a year, which would push up India's iron ore output further if it lifted restrictions on the mine.However, the miners added that the high inventories of low-grade ore were expected to continue to deteriorate if the government did not adjust export duties.


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