PDAC Presentation 24.2.2014

8/12/2019 PDAC Presentation 24.2.2014

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IRON OREINDIA & NMDC


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IRON ORE RESOURCE OF INDIA

Total Iron Ore resource of India is 28.52 BT

17882.1

10644.1

28526.2

0

5000

10000

15000

20000

25000

30000

Haematite Magnetite Total

Reserves

Remaining Resources

Total Resources as on

1.4.2010

6,900 7,000

23,00025,000

29,000

35,000

0

5,000

10,000

15,000

20,00025,000

30,000

35,000

40,000

US

India

China

Russia

Brazil

Australia


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USA Australi

a

Brazil Canada China India* Iran Kazakhs

tan

Maurita

nia

Mexico Russia South

Africa

Sweden Ukraine Venezue

la

World

total

Crude

ore (mt) 6,900 35,000 29,000 6,300 23,000 8,093 2,500 2,500 1,100 700 25,000 1,000 3,500 6,500 4,000 170,000

Iron

content 2,100 17,000 16,000 2,300 7,200 4,500 1,400 900 700 400 14,000 650 2,200 2,300 2,400 80,000

* As per 2010 data

Grade Reserves Remaining

Resources

Total

Resources

Haematite 8093.5 9788.6 17882

Magnetite 21.8 10622 10644

Total 8115.3 20411 28526

IRON ORE RESOURCE OF INDIA

Odisha

34%

Jharkhand

26%

Chattishgarh

19%

Karnataka

12%

Goa

5%

other states

4%


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IRON ORE PRODUCTION IN INDIA

53

525

375

40

1,300

245 100 610

200

400

600

800

1000

1200

1400

Mine production 2011

Mine production 2012e

Iron ore production for FY 2011-12 of 167 MT shows decrease

of about 19% compared to FY 2010-11

Head Public

sector

Private

sector

Total

Mines 34 260+24

associated

mines

294+24

Production 33.3% 66.7% 100%

No. Mines with >1MTPA 13 30 43

Contribution >1 MTPA Mines

to total production

31.1% 44.8% 75.9%

Captive mine 13 13 26

Production of captive mine

(MT)

22.6 20.2 42.8


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Orissa

40%

Jharkhand

11%

Chhattisgarh

18%

Karnataka

8%

Goa

20%

Others

3%

State Ore (MT)

Orissa 67013

Jharkhand 18942

Chhattisgarh 30455

Karnataka 13189

Goa 33372

Orissa

36%

Jharkhand

5%

Chhattisgarh

26%

Karnataka

8%

Goa

18%

others

7%

Value

Rs. 37965 Crores

IORN ORE PRODUCTION IN INDIA


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IRON ORE MINING &

CONSUMPTION IN INDIA

In 2011-12, about 110.98 MT of Iron ore was consumed in various industries like iron & steel, sponge iron, ferro-alloys, alloy

steel, coal washery and cement.

Iron & Steel including sponge iron were major consumer of iron ore and accounted about 98%.

Iron ore mining is carried out by opencast method .

Mining is undertaken using by manual, semi-mechanized and mechanized operations.

Large mechanized mines are mostly in the public sector.

Manual and semi-mechanized mines are mainly in private sector.

Some mechanized mines in Goa, Jharkhand and Odisha are also operated by the private sector


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IRON ORE INDUSTRY IN INDIA

13 pelletisation plants in the country with capacity of 41.5 million

tonnes per annum.

India's first dry process pelletizing plant , owned by of JSW Steel Ltd

is with capacity to manufacture 9.2 million tpy pellets across its two

units.

Essar Steel Pelletisation plant at Visakhapatnam has installedcapacity of 8 million tonnes per annum with second largest in the

world Iron ore slurry is pumped through 267 km pipeline from

Bailadila, Chhattisgarh.

Essar, NMDC, JSW, The Orissa Minerals Development Co. Ltd

(OMDCL), TATA steel are in process of setting up pelletaisation plant

To encourage beneficiation and pelletisation of iron ore fines in the

country, basic customs duty on the plants and equipments iron orebeneficiation plants has been reduced from 7.5 % to 2.5% w.e.f 17th

March 2012.

The sintering plants total capacity is about 60.47 MTPA.

All integrated steel plants except IISCO Steel Plant (ISP)

have their own sintering plants.

The gross pig iron manufacturing capacity in the country

was about 5.941 million tonnes .

The private sector accounted for 91% of total production

for sale of pig iron in the country in 2011-12 (provisional).

India is the world's largest producer of sponge iron with a

host of coal based units accounted for 76% of total sponge

of iron production in the country .

The installed capacity of sponge iron increased from 1.52

MTPA in 1990-91 to around 37.31 MTPA in 2012-13.

Production has increased from 0.9 MT in 1990-91 to 20.37

MT in 2011-12.

There were 324 sponge iron units in the country. Out of

these, 3 gas-based units had a capacity about 8 milliontonnes per annum and the rest were coal-based units.


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IRON ORE Foreign Trade-INDIA

iron ore fines (85%),

iron ore lumps (14%), and

iron ore non-agglomerated concentrates & iron

ore pellets (1%).

2010-11 2011-12

Exports of iron ore 47.15 46.89

Value Exported 22184 21416

China 93%,

Japan 4 %

Korea 2%

Iron ore Pellets (82%),

2010-11 2011-12

Import of iron ore

(MT)

1.867 0.978

Ukraine, Russia, Bahrain, South Africa, Belgium

Senegal, Indonesia, Mali, Finland


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NMDC - Profile

Formed on 15.11.1958

Govt. Of India Enterprise , Under Ministry Of Steel

Navratna Category Company

Pioneer and leader in exploration & Mining

Core business - Iron ore, Diamond & Sponge Iron.

Consistent Profit Making & Dividend paying

Company.

Product Achievement

2010-11 2011-12 2012-13

Iron Ore

(LT)

Bailadila&

Donimalai

251.55 272.60 271.84

Diamon

d

(Carats)

Panna 10865.93 18043.44

Sponge

Iron

(T)

Paloncha 38962.00 37260.00


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NMDCs FINANCIAL PERFORMANCE

11614.7114255.65

19200.07

24396.29 27505

0

5000

10000

15000

20000

2500030000

2008-09 2009-10 2010-11 2011-12 2012-13

4372.38

3447.26

6499.227265.39

6342.37

0

1000

2000

3000

4000

5000

6000

7000

8000

2008-09 2009-10 2010-11 2011-12 2012-13

2011-12 2012-13

Authorized Capital396.47 400.00

Profit After Tax 7265.00 6342.00

Turn Over 11262.00 10704.00

Net worth 24396.00 27505.00

7559.11

6222.6

11285.33 11167.5610558.71

0

2000

4000

6000

8000

10000

12000

2008-09 2009-10 2010-11 2011-12 2012-13


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India is one of the leading producer of iron ore in the world.

In order to conserve iron ore resources of the country for long term domesticvalue addition, export duty on all varieties of iron ore (except pellets) has beenincreased w.e.f. 30.12.2011 from 20% to 30% ad valorem.

The Working Group for 12th Plan, Planning Commission of India has estimated thatthe production of iron ore would be about 374 million tonnes by 2016-17 at 8%

growth rate. The apparent consumption is estimated at 218 million tonnes by2016-17 at 8% growth rate.

The Working Group has pointed out that to promote the domestic steel industry,assured iron ore linkages need to be promoted.

It has further recommended that fiscal and non-fiscal incentives will need to beprovided through joint effort of the Ministry of Mines and Ministry of Steel. Inparticular, technologies for agglomeration, pelletisation and direct use of fines to

produce steel must be identified and taken up in Mission mode to achieve thenational goal to produce 200 million tonnes of steel per annum by 2020.

Acquisition of technology assets abroad pertaining to application of low grade ironore and other technology for pig iron, sponge iron and pelletisation has also beenunderlined by the Working Group in its Report.

Future Out Look Of INDIA


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Thank You

PDAC Presentation 24.2.2014

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