Amidst a recent development, a significant growth in the production of aluminium and other key minerals was recorded. The index of mineral production for March 2024 was 156.1 — a 1.2% surge in production, as compared to March 2023. The index for the entire FY 2023-24 has increased by 7.5% over FY 2022-23. Some of the non-fuel minerals that showed positive growth during March 2024 as compared to the corresponding month of the previous year are Copper Concentrate, Gold, Manganese Ore, Diamond, Graphite, Kyanite, Sillimanite, Limeshell, Limestone, Magnesite, etc.
Iron ore and Limestone together bulk up for about 80% of the total MCDR mineral production by value. Production of these key minerals in the country has exhibited high growth in FY 2023-24 as per provisional figures. The production of iron ore at 277 million metric tons (MMT) in FY 2023-24 has broken the production record of 258 MMT achieved in FY 2022-23, with a 7.4% growth. Showing a similar trend, limestone production has also surpassed the production record of 406.5 MMT achieved in FY 2022-23, increasing by 10.7% to 450 MMT in FY 2023-24.
In the non-ferrous metal sector, production of primary Aluminium metal in FY 2023-24 has broken the production record of FY 2022-23. Primary aluminium production increased from 40.73 lakh tons (LT) in FY 2022-23 to 41.59 LT during FY 2023-24, at a 2.1% growth rate.
It must be taken into account that India is the 2nd largest Aluminium producer, 3rd largest lime producer and 4th largest iron ore producer in the world. Hence, such a sound growth in the production of iron ore and limestone in FY 2023-24 reflects the robust demand conditions in the user industries viz. steel and cement, which would ultimately bolster India’s economic activity in user sectors such as energy, infrastructure, construction, automotive and machinery.
