Chhattisgarh sees 33 percent output jump this year

NEW DELHI Tue Jun 4, 2013 4:15pm IST

Related Topics

Stocks

   

NEW DELHI (Reuters) - India's fourth-largest iron ore producing state expects to raise production by a third to about 37 million tonnes this fiscal year, even as mining restrictions in two other states turn the country into an importer of the steelmaking ingredient.

Chhattisgarh produced 27.7 million tonnes in the year ended March 2013, with all of that output going to local steel mills, said N.K. Xaxa, mines director of the state.

The higher production would benefit companies such as JSW Steel Ltd (JSTL.NS) which have been forced to import iron ore amid steady steel demand and falling output of the raw material.

"Demand is very high, so we are raising production," he told Reuters. "We've not been able to meet demand of the local steel companies because of some geopolitical issues."

Xaxa declined to specify why the state's output will rise this year.

State-owned National Mineral Development Corp (NMDC.NS), Steel Authority of India Ltd (SAIL.NS), Essar Steel and Chhattisgarh Mineral Development Corp are some of the iron-ore lease holders in Chhattisgarh, Xaxa said, adding that his department has sanctioned 18 leases. JSW and Essar Steel buy ore from NMDC.

India's output of iron ore is estimated to have fallen to about 140 million tonnes in the year ended March 31, 2013, from 207 million in 2011, after the Supreme Court placed a ban on mining in Karnataka and Goa states following allegations of irregularities. Output was 167.3 million tonnes for the 2012 fiscal year.

In April, the top court allowed some mines in Karnataka to resume operations subject to conditions. Goa, India's No.1 iron ore exporting state, expects court approval to resume by year-end the production and export from mines with a capacity of about 40 million tonnes.

Xaxa said he did not think there was any irregularity with respect to iron ore mining in Chhattisgarh.

(Editing by Muralikumar Anantharaman)

FILED UNDER:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage