Heavy rains in Chhattisgarh have impacted NMDC’s iron ore production and sales during the July-September quarter this year.
Iron ore production fell 23 per cent to 5.37 million tonnes during the quarter against 6.99 mt in the corresponding period last year.
The country’s largest iron ore mining company’s sales were also impacted by 23 per cent on poor demand and sluggish evacuation. Iron ore sales were down at 5.85 mt against 7.57 mt in the corresponding period last year.
In the first half of current fiscal, the sales were down 12 per cent at 12.70 mt against 14.45 mt in the corresponding period previous year, said NMDC Chairman C.S.Verma.
Production during the first six months was down by 7 per cent at 12.29 mt against 13.15 mt.
“The unprecedented heavy rains have not only hit the production but also the evacuation of iron ore from the pit heads” Verma said.
He was speaking to reporters after the quarterly review of the company’s performance by Steel Minister Beni Prasad Verma.
Expressing satisfaction over NMDC’s performance, Steel Minister advised the iron ore miner to increase the pace of its project implementation and finish them as per the schedule.
NMDC is setting up a 3 million tonne per annum integrated steel plant at Nagarnar in Chhattisgarh, which is expected to be operational by July 2015.
Beni Prasad Verma also felt that NMDC should rope in the public sector steel maker RINL to execute and operate the plant at Nagarnar.
“NMDC should leverage the expertise of RINL to operate the steel plant” Verma said.