India: NMDC Sales Up 28% and Production 16% in Sept’19

NMDC- India's largest iron ore producer registered iron ore sales at 1.91 MnT for the month of Sep’19, up 28% as compared to 1.49 MnT in Aug'19. Sales from Chhattisgarh mines witnessed at 1.34 MnT (up 28% M-o-M) and sales from Karnataka mines at 0.57 MnT, up 30% on monthly basis.

NMDC iron ore sales recorded increase for the month. The miner slashed iron ore lumps and fines prices by INR 200/MT and DRCLO by INR 230/MT from Chhattisgarh mines, and from Karnataka mines prices reduced by INR 300/MT in both fines and lumps last month.

On yearly basis, sales have dropped 18% as against 2.34 MnT in Sep'18.

NMDC iron ore production up 16%

NMDC registered 16% increase in production for the month of Sep'19 to 1.64 MnT as against 1.41 MnT Aug’19. Production from Chhattisgarh mines picked up by 33% M-o-M to 1.05 MnT, while it dropped by 5% from Karnataka mines to 0.59 MnT.On yearly basis, production fell sharply by 30% as compared to 2.35 MnT in Sep’18.

Ministry of Mines has made a recent development in MMDR Amendment Act to get the issue of NMDC Donimalai case resolved and grant renewal of it. The Central Government has made renewal of mining leases of public sector companies mandatory without going through the auction process. The amendment paves way for renewal of NMDC Donimalai mines where operation was suspended after lease expiry in Nov’18.

In Aug'19 Govt of Karnataka had decided to cancel the lease renewal order of NMDC's Donimalai mines in Karnataka in an order dated 17 Aug '19 and had further put for an auction sale of the expired mine lease block.