| Date: |
16-02-2011 |
| Subject: |
NMDC Sees 25% Jump in FY12 Iron Ore Output |
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India's largest iron ore miner NMDC expects output to touch 30 million tonne in 2011-12 from a likely 24 million tonne this fiscal year, its Chairman Rana Som said on Tuesday, as bottlenecks clear.
"It's a 25% jump," Som told reporters at an event.
Som added that NMDC has managed to clear inventory which had accumulated in mines where production was hampered by attacks from Maoist rebels, allowing output to increase.
Besides, strong demand from India's steel and construction sectors encouraged higher production.
NMDC has mines in several areas of India where Maoist rebels have called strikes and attacked rail tracks which affect transportation of iron ore and lead to output halts.
Som said NMDC expected to export about 2.5 million tonne of ore this year to Japan and South Korea, and was negotiating with these buyers for renewing contracts from April 1.
He said bullishness in international iron ore prices, currently at record highs as China builds steel product stockpiles, was likely to be short-lived, as Chinese demand could ease and supply disruptions from adverse weather in Australia would be fixed.
Source : smartinvestor.in
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