SMM4, March 14: data and analysis firm GlobalData reports that due to the outbreak of Covid-19 and the subsequent closure of ports, labor shortages and transport restrictions India's iron ore exports are expected to fall by about 25 per cent to 23.3 million tonnes in 2020.
In addition, the auction process for several iron ore mines was completed in February 2020, as their leases expire in March 2020. Of the about 25 non-mandatory iron mines, 22 were successfully auctioned and 3 were shelved. Proceedings have yet to be brought by the Supreme Court of India.
The auction was delayed due to the temporary uncertainty of the maximum rental area. The auction of (Odisha) iron ore in Orissa, scheduled for March last year, will have a serious impact on India's iron ore production in 2020. India's iron ore production is expected to fall to 205.7 million tonnes in 2020, down 12.5 per cent from 234.9 million tonnes in 2019. If the Indian government does not allow new owners to start operations before obtaining new forest and environmental permits, production could fall by more than 4 million tons.
However, despite the decline in production in 2020, India's iron ore production is expected to increase at an average annual rate of 7.2 per cent in 2020-2024, reaching 271.2 million tonnes by 2024.
At the same time, India's iron ore exports, supported by increased Chinese demand, are expected to recover from the 2020 decline and forecast a compound annual growth rate of 4.2 per cent and 27.5 million tonnes by 2024.
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