Indian iron ore production declined -26.1% on-year in March to 12.2 million tonnes. The value of this output was INR 2,535 crore ($398.1 million), Kallanish learns from the Indian mines ministry. Although the tonnage was identical to that in February, the value plunged from $430.8 million.

Manganese ore and chromite production during March also declined by -23% and -21% respectively to 195,000t and 365,000t.

India is currently suffering from an iron ore shortage due to the closure by the Supreme Court of various mines. This is keeping local iron ore prices at higher levels than on the international market. The mines ministry says that of 793 registered iron ore mines, 596 are not operating. All 330 in Goa remain idled, while 106 of 143 in Odisha are also still idled.

JSW Steel foresees improved domestic iron ore availability in fiscal year 2016 thanks to the resumption of closed mines; however, rising steel imports remain a concern (see Kallanish 18 May).

Production of coal in March, meanwhile, increased 5.2% on-year to 68.8 million tonnes, at a value of INR 9,377 crore. Nevertheless, a domestic shortage remains after India cancelled last September 214 of the 218 coal blocks awarded to companies since 1993. Besides coking coal, Indian producers need thermal coal to operate their captive power plants.

India is in the process of carrying out coal block auctions that are seen eventually easing the shortage. State-owned Coal India Limited, meanwhile, has been tasked to double annual production to 1 billion tonnes by fiscal year 2019/20.