Resumed operations at three Indian iron ore mines to ease supply shortage

Monday, 22 February 2021 11:49:44 (GMT+3)   |   Kolkata
       

India’s shortage of iron ore supplies in the local market is expected to ease slightly in the near term with at least three mines coming into production over the past week, SteelOrbis has learned from official circles on Monday, February 22.

According to an official in the Odisha government, its mineral mining arm, Odisha Mining Corporation (OMC), has commenced production from two iron ore mines in the state - Guali and Jiling-Langlota - with combined reserves estimated at 275 million mt.

The official said that approval was received from the central government for the special allocation of the mines to OMC and commencement of production has been achieved within a record time of 25 days.

The state government has set an annual combined production target of 12 million mt from these two mines, and this will significantly ease the raw material shortage being faced by sponge iron units and small steel mills located in Odisha.

Meanwhile, state-run miner NMDC Limited has also restarted operations at its Donimalai iron ore mines in the southern state of Karnataka, which will bring an additional 7 million mt of raw material to the market.

“The resumption of mining at the mines will increase supply of iron ore for steelmaking and higher supplies will lead to easing of prices,” R K Sharma, secretary general of the Federation of Indian Mineral Industries (FIMI), the apex representative body of miners in India, said.


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