The production of iron ore in India is likely to remain around 140 million tonnes this year due to ban in Goa, slow progress in resumption of mines in Karnataka and cap in Odisha
The domestic steel industry, which is facing acute shortage of iron ore, is likely to increase its dependency on imported iron ore for this year as well. The continued ban in Goa, delay in accordance of environment and forest clearances for several mines in Karnataka and cap on iron ore mining in Odisha have resulted in a drastic decline in iron ore production.
The steel industry imported 3.05 million tonnes of iron ore during 2012-13, mainly for port-based steel mills. On account of reduced iron ore production and regional shortages of iron ore last year, major steel units like Essar Hazira, Bhushan Steel and JSW Ispat had to resort to imports of iron ore.
Compared to 0.97 million tonnes of iron ore imported in 2011-12, the imports in 2012-13 have gone up by 3.1 times. However, during the current fiscal, ion ore imports are likely to go up by 67% to around 5 million tonnes. This is mainly due to lower production of iron ore domestically, the steel industry sources said.
The country was the third largest exporter of iron ore till 2011 and lost its position owing to various factors. According to Federation of Indian Mineral Industries (FIMI) very high export duty of 30% coupled with higher freight rates on iron ore meant for exports by the Railways, iron ore exports have come down sharply during the last fiscal.
Production of iron ore has come down from 218 million tonnes in 2008-09 to 140 million tonnes in 2012-13 due to enforcement of strict environmental and other regulatory measures. The country had seen a surplus of almost 110 million tonnes in 2008-09 and 2009-10. However, this has come down to a level of just 17 million tonnes in the year 2012-13.
“The production of iron ore is expected to remain at the level of 140 million tonnes due to the cap in production in Karnataka, ban in Goa and strict enforcement of environmental regulations in Odisha. However, domestic steel industry requirement is more than 145 million tonnes in the current fiscal, and the industry is forced to import iron ore, which is not economically viable,” Sajjan Jindal, chairman and managing director, JSW Steel Limited said in his recent representation to the Prime Minister.
In Karnataka, subsequent to the order of the Supreme Court for opening of mines, the iron ore supply is not yet normalised. Out of 57 mines as approved by Central Empowered Committee, presently only 14 mines are operating with an annual production rate of 13.77 million tonnes against the total annual demand of 32-35 million tonnes.
The domestic steel industry, which is facing acute shortage of iron ore, is likely to increase its dependency on imported iron ore for this year as well. The continued ban in Goa, delay in accordance of environment and forest clearances for several mines in Karnataka and cap on iron ore mining in Odisha have resulted in a drastic decline in iron ore production.
The steel industry imported 3.05 million tonnes of iron ore during 2012-13, mainly for port-based steel mills. On account of reduced iron ore production and regional shortages of iron ore last year, major steel units like Essar Hazira, Bhushan Steel and JSW Ispat had to resort to imports of iron ore.
Compared to 0.97 million tonnes of iron ore imported in 2011-12, the imports in 2012-13 have gone up by 3.1 times. However, during the current fiscal, ion ore imports are likely to go up by 67% to around 5 million tonnes. This is mainly due to lower production of iron ore domestically, the steel industry sources said.
The country was the third largest exporter of iron ore till 2011 and lost its position owing to various factors. According to Federation of Indian Mineral Industries (FIMI) very high export duty of 30% coupled with higher freight rates on iron ore meant for exports by the Railways, iron ore exports have come down sharply during the last fiscal.
Production of iron ore has come down from 218 million tonnes in 2008-09 to 140 million tonnes in 2012-13 due to enforcement of strict environmental and other regulatory measures. The country had seen a surplus of almost 110 million tonnes in 2008-09 and 2009-10. However, this has come down to a level of just 17 million tonnes in the year 2012-13.
“The production of iron ore is expected to remain at the level of 140 million tonnes due to the cap in production in Karnataka, ban in Goa and strict enforcement of environmental regulations in Odisha. However, domestic steel industry requirement is more than 145 million tonnes in the current fiscal, and the industry is forced to import iron ore, which is not economically viable,” Sajjan Jindal, chairman and managing director, JSW Steel Limited said in his recent representation to the Prime Minister.
In Karnataka, subsequent to the order of the Supreme Court for opening of mines, the iron ore supply is not yet normalised. Out of 57 mines as approved by Central Empowered Committee, presently only 14 mines are operating with an annual production rate of 13.77 million tonnes against the total annual demand of 32-35 million tonnes.
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