India's Ministry of Mines in an advisory has asked iron ore miners in the eastern Indian state of Odisha to increase production of their mines to the maximum limit mentioned in their respective environmental clearance (EC) certifications, a government source said on Friday, June 29.
The ministry has noted that several iron ore mines in Odisha are operating far lower than capacity approved in the environmental clearances, while the government believes that there exists headroom to increase production by at least 20 percent to mines' rated capacities mentioned in the clearances, the official added.
With domestic iron ore prices rising and the government unwilling to intervene in setting pricing benchmarks, the government is keen to push implementation of existing policies to ensure easing of supply-side pressures on prices, the official said.
Indian iron ore production during the financial year 2017-18 has been pegged at 210 million mt, but, while breakdown of production as per each state is yet to be officially released, the industry estimates that Odisha’s production during the last fiscal year is around 100 million mt.