Author: Paul Ploumis
22 May 2015 Last updated at 02:22:57 GMT
NEW DELHI (Scrap Monster): According to latest trade data published by the Indian Mines Ministry, the country’s iron ore output dropped significantly during the month of March this year. The iron ore production during the month totaled 12.2 million tonnes, lower by 26.1% when compared with the previous year. The value of output plunged from $430.8 million a year ago to $398.1 million in March this year.

The reduced output is primarily on account of closure of various mines in the country based on court order. Mines Ministry data indicates that out of 793 registered iron ore mines in the country, only 197 are operating. The balance 596 iron ore mines are in idled state. The prevailing court ban on mining in the state of Goa has lead to temporary closure of operations at all 330 mines in the state. In Odisha, 106 out of 143 mines are still not operating.

According to forecast by JSW Steel, the domestic iron ore availability is likely to improve in FY ’16, as more mines resume operation. Rising steel imports continue to remain as a big threat for iron ore mining industry, noted JSW Steel.

Meantime, coal output by the country rose 5.2% year-on-year to 68.8 million tonnes. The value of output totaled Rs 9,377 crore. Despite increased production, the country still faces coal shortage as the government in last September had cancelled 214 out of the 218 coal blocks awarded since 1993. The government initiative to allot new coal blocks through fresh auction process is likely to ease the shortage, going forward. The state-owned Coal India Limited (CIL) plans to double its annual coal output to 1 billion tonnes by 2019-2020.