SMM1, 31 March-according to (Federation of Indian Mineral Industries), an industry organization, the Indian Mining Federation estimates that by March 31, 2019, India's domestic iron ore production is expected to be slightly more than 210 million tons in the current fiscal year. It is the highest level since 2009-10 when production reached 219 million tons. But India's domestic steel mills will begin to suffer from a shortage of iron ore next year.
Steelmakers are cautious that the government needs to start auctions in July and the mines could close until the new auctions are completed, which could lead to delays in the allocation of new mining leases and disruptions in iron ore supplies.
As of March 2020, as many as 288 mines-manganese, bauxite and limestone-were facing expiry of their leases, according to government data.
It is worth noting that, despite rising domestic iron ore production in the current fiscal year, imports of raw materials also showed an upward trend, with imports of 10 million tons between April and November 2018, compared with 8 million tons in the previous fiscal year.
After Monday's meeting of the advisory committee, steel minister Chowdhury Billandra Singh said the steel department was looking for ways to address the risk of the closure of several iron ore mines unless the new auction was completed in time. Otherwise, the interruption of raw material supply may lead to a decline in domestic steel production.
This is a serious problem, not only iron ore, but also the supply of other steelmaking materials such as limestone and manganese may be interrupted, and China's Ministry of Steel and Iron has appointed a senior official. Specifically responsible for ensuring that local steel mills do not face shortages of raw materials.
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