April-January mineral production up 9%, iron ore leads the rally

April-January mineral production up 9%, iron ore leads the rally
The growth in terms of value was up by 10.55% at Rs.35,989.444 crore compared with Rs.32,556.196 crore in the year-ago period.
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On the back of higher production of iron ore and chromite, India’s overall mineral production till January this fiscal has gone up 9% at 437.668 million tonnes (MT) compared with 401.378 MT during the corresponding April-January period last year, according to provisional mining data reviewed by InfraCircle.

The growth in terms of value was also up by 10.55% at Rs.35,989.444 crore compared with Rs.32,556.196 crore in the year-ago period.

The rise in mineral production comes at a time when the National Democratic Alliance (NDA) government, credited with setting up a template for natural resource allocation in India, aims to speed up auction processes across the states to increase mineral production.

India’s mineral production for financial year (FY) 2015-16 grew by 9% at 495 MT. On the other hand, the growth in terms of value decelerated by 11% at Rs.39,767.3 crore during that period.

According to provisional data compiled by the ministry of mines, while metallic mineral production, including iron ore, bauxite, copper and zinc, rose by 19.16% to 180.784 MT during the first 10 months of FY2017 compared with 151.714 MT during the same period of FY2016. Growth in terms of value was also up by 10.74% at Rs.29,980.710 crore during the period.

Metallic minerals such as iron, bauxite and manganese are those which can be melted to obtain new products such as steel and aluminium, while non-metallic minerals such as coal and limestone generate high levels of energy.

A significant spurt has also been seen in the production of iron ore during this period. Its production zoomed 27% at 154.484 MT compared with 122 MT during nine months of the last financial year. Its value was up by around 8% at Rs.19,417 crore. Similarly, production of chromite ore was up by 18% at 2.498 MT from 2.117 MT in the year-ago period.

India, which accounts for about 4% of the global iron ore production, has recently seen a boost with the government taking a slew of measures, including waiver of export duties and pruning of railway freight charges.

According to the data, production of bauxite has taken a hit during the period. Bauxite production was down by 16% at 20.453 MT compared with 24.326 MT during the nine months of last fiscal. While in value terms, growth was down by 5% at Rs.1148.928 crore.

Also, production of lead and zinc registered a negative growth of 1% and 9.43% at 0.211 MT and 1.137 MT, respectively. Also, copper production was down 5.5% at 0.110 MT.

During the period, production of non-metallic minerals, including garnet, limestone, phosphorite and sillimanite was up 2.89% at 256.884 MT compared with 249.664 MT during the same period last year. Its value was also up 10% at Rs.6,008 crore compared with Rs.5,482.469 crore during the same period last year.

 

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