How Iron Ore Supplies are being Impacted Post Odisha Mining Auction | BigMint

Описание: How iron ore supply dynamics changed post-mining auction?

1. Introduction:

When Odisha Government auctioned 19 mines earlier this year it was meant to bring in greater transparency, efficiency and productivity. But five months down the line there are signs that it isn't quite working out that way.

13 of the 19 new mine owners haven't begin production. Some have not signed mining leases with the state government. A couple of others have surrendered their mines and a couple more had gone into litigation.

#SteelMintVlogs #Ironore #OdishaMines

2. Indian iron ore production – Why Odisha is so important?

3. Odisha state govt puts 19 operational mines for auction:
a. 19 operational mines put for auction in Odisha
b. Production capacity : 86 MnT
c. Actual production in FY20: 71 MnT
d. Production in FY19: 55.5 MnT


e. 35% of Indian merchant iron ore production put on auction

4. Auction results surprises market:
a. Over 90 companies participated
b. Auctioned fetched weighted average premium of around 117%
c. Highest premium: 150%
d. Lowest premium: 90%
e. JSW steel bagged 4 mines

5. Demand-Supply Dynamics:
a. Odisha iron ore production increases by 30% in FY20
b. Supplies at risk
c. Additional supplies expected in FY21
d. Odisha Iron Ore Production

6. Conclusion:

a. Iron ore shortage to stay for few more months
b. Do not expect Iron ore shortage in medium to long term
c. Proposed amendments in mining act for sustainable mining
d. Limited scope for iron ore imports

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