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NMDC Ltd reports a modest 3.36% increase in iron ore sales

NMDC also posted a marginal rise in iron ore production to 18.89 million tonne between April -November 2019 as against a production of 18.75 mt upto November 2018. While NMDC's Chhattisgarh mines accounted for a production volume of 13.33 mt (against 12.24 mt last year), its Karnataka mines contributed 5.45 mt in April-November 2019.

, ET Bureau|
Dec 02, 2019, 04.50 PM IST
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KOLKATA: NMDC Ltd, the country's largest iron ore miner, reported a modest 3.36% increase in cumulative iron ore sales to 19.99 million tonne (mt) between April-November 2019 as against a sales of 19.34 mt in the same period last year.

While NMDC's Chhattisgarh mines accounted for a bulk of the sales at 14.85 mt against 13.78 mt last year, the contribution of the company's mines in Karnataka was lower at 5.14 mt this year compared to 5.56 mt in 2018.

NMDC also posted a marginal rise in iron ore production to 18.89 million tonne between April -November 2019 as against a production of 18.75 mt upto November 2018. While NMDC's Chhattisgarh mines accounted for a production volume of 13.33 mt (against 12.24 mt last year), its Karnataka mines contributed 5.45 mt in April-November 2019, which is over a million tonne lower compared to a production of 6.51 mt in same period last year. The country's largest domestic miner shared provisiopnal data for production and sales upto November 2019 in a notification to the BSE on Monday.

NMDC's total iron ore production in November 2019 was lower at 2.94 mt as againt 3.29 mt in November 2018, while sales remained flat at 2.79 mt same as November last year.

Post amendment of Mineral Rules 2015, which made renewal of mining leases of PSUs mandatory, NMDC expects a fast resolution of the Donimalai mining issue in Karnataka. With proactive production planning, iron ore volumes are estimated to touch 32 mt in FY20. Lst month, an ICICI Securities report said NMDC could be in a ‘sweet spot’ with “Donimalai mining expected to resume, domestic iron ore prices currently at around 40% discount to landed cost of imports at east/west coasts, and the possibility of the company benefiting from iron ore mining auctions.”

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