India’s largest iron ore miner NMDC, has witnessed a strong growth in production and sales during February 2021 with production for the month at 3.86 million tonnes (mt), up 19 per cent from 3.24 mt of ore mined in the corresponding month in February 2020. Sales in February 2021 increased by 12 per cent at 3.25 mt as against the 2.91 mt achieved in February 2020.
The iron ore miner has left the price of lump ore unchanged at Rs 5,100 per tonne and Rs 4,210 per tonne for fines in its latest price revision announced last week. Iron ore is the key raw material used in producing steel. Any change in its prices has a direct impact on the rates of steel. The revised prices are effective from March 6, 2021 and exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee, and other taxes, the company said.
Last month, NMDC reduced the price of lumps to Rs 5,100 per tonne from Rs 5,700 per tonne fixed on January 6, 2021, while the rate of fines was also revised downwards to Rs 4,210 a tonne from Rs 4,810 per tonne.
The Bailadila projects of NMDC at Chhattisgarh produced 3.15 mt of ore, a growth of 8 per cent from 2.93 mt last year in February. NMDC recently restarted the operations at Donimalai mines, Karnataka, which have a capacity to produce a minimum of 0.5 mt of iron ore a month (about 6 mt in a full year). This resumption of operations will further boost the overall performance of the company.
The company, which has been in the business of mining iron ore for over six decades, produces about 35 MT iron ore from its three iron ore complexes in the country one in Donimalai in Karnataka and two in the Dantewada district of Chhattisgarh. NMDC has set an ambitious target of producing 100 MT iron ore by 2030.