India-based NMDC’s iron ore output down 1.5% in FY 2019-20, focuses on steel project

Thursday, 02 April 2020 15:37:57 (GMT+3)   |   Kolkata
       

Indian state-run iron ore miner NMDC Limited has reported a marginal fall of 1.5 percent in production during the fiscal year ended March 31 to 31.88 million mt, compared to 32.36 million mt in the previous fiscal year, according to a filing by the company. Total sales of iron ore in the fiscal year 2019-20 were reported by the miner at 31.53 million mt. down 2.6 percent from the previous year.

The situation for the company worsened significantly in March, when steel producers and pellet plants started to drastically cut operations in response to the 21-day nationwide lockdown. NMDC’s iron ore production in March 2020 was recorded at 2.76 million mt, down 32 percent year on year. According to sources, the iron ore production and sales will be reduced for the next two months.

Meanwhile, company sources said that NMDC will raise an additional INR 50 billion through debt instruments to meet the cost overrun for its greenfield 3 million mt per annum steel mill under construction in the central Indian state of Chhattisgarh, on which the miner has already spent an estimated INR 140 billion. The mill is scheduled to start operation by the end of the fiscal year 2020-21.


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