As mining resumes, handling of iron ore surges at major ports

01 November 2016

Handling of iron ore has rebounded at major ports following the resumption of mining in Goa, Karnataka and Odisha after a long gap.

In the first half of the current financial year ended September 2016, iron ore handling more than doubled at major ports to 17.50 million tonnes (mt) when compared with 7.25 mt in the same period last year.

The volume will, however, be nowhere near the peak handling of nearly 100 million tonnes (mt) in 2009-10. Following the ban on issue of new licences to mines and a slump in global demand, the number kept dropping in subsequent years to an all-time low of 10 mt in 2015-16.

However, in the first half of the current year, the volume increased substantially, with the Visakhapatnam port handling the highest volume among major ports with a throughput of 52.18 lakh tonnes (22.44 lakh tonnes) of iron ore, according to the Indian Ports Association.

Iron ore export volume improved to some extent, on low base, due to export contract of NMDC, elimination of export duty on low grade iron ore and restarting of mining operations in Goa, said K Ravichandran, Senior Vice-President, ICRA Ltd, who tracks the port sector.

Many of the licences of mines that were cancelled have been renewed. Iron ore from these mines cannot be consumed locally and exported to countries like China and Japan, he said.

NMDC has a contract with a Japanese firm, and has been exporting in a big way. The volume growth will increase with many more mines getting licences, he said.

Source – BL