Indian iron ore industry - key facts
Indian iron ore industry - key facts. India is the world's third-biggest supplier of iron ore after Australia and Brazil. Here are some key facts about the Indian iron ore industry: PRODUCTION: - India produced 226 million tonnes of iron ore in 2009/10 and exported 117.37 million tonnes. - There are about 500 mines, half of which are operational. These mines are held by about 80 companies. - High-grade ores with 62-65 percent iron are produced mainly in the east and south. Low-grade ores with 50-60 percent iron are produced in the west and south. - The largest mining firm is state-run NMDC , which produces about 29 million tonnes annually, mostly for local sales. - The steel industry is a big domestic user of iron ore. Many steel companies have captive mines. EXPORTS: - China is India's biggest buyer, with its proximity helping it secure ores with low freight costs. - The largest exporter is Sesa Goa , a unit of London-listed Vedanta Resources . - Other large producers and exporters are Essel Mining, Rungta Mines, V.M. Salgaocar, MSPL and Chowgule. - Miners in Goa, on the west coast, have lower costs as mines are located near the port, and so avoid road and rail charges. CHALLENGES: - Exporters work under the threat of hikes in export duty every time international demand rises as the government tries to cool local prices of iron ore to help steel firms. - In April, India raised the export duty on iron ore lumps to 15 percent from 10 percent previously. Duty on iron ore fines stands at 5 percent. - The cost of mining iron ore ranges from $8 to $16 per tonne, but rail transportation to the port can be as high as $30. The industry has been lobbying for lower rail freight. - Port infrastructure is poor and vessels can wait up to seven days to load cargo. - Indian prices generally follow the global market, dominated by Australian and Brazilian miners, with China buying on spot basis for its low-grade ore needs. * Source: Federation of Indian Mineral Industries and industry members
