Record Production For the Mining Industry in FY’24

Indian Masterminds Bureau
Published on 5 Apr 2024, 4:23 pm IST
2 minutes read

Highlights

Production of key minerals like iron ore and limestone in the country has exhibited high growth in FY24

Data from February 2024 indicate a significant increase in mineral production compared to the same month last year. The mineral production index for February 2024 reached 139.6, reflecting an 8.0% growth. This positive trend is further reinforced by an 8.2% cumulative growth in the index for the period April 2023 to February 2024, compared to the corresponding period in the previous year.

Iron ore and limestone together account for about 80% of the total MCDR mineral production by value. Production of these key minerals in the country has exhibited high growth in FY24 as per provisional figures. Iron ore production has increased from 230 million metric ton (MMT) during the 11-month period April-Feb of FY23 to 252 MMT during the corresponding period of FY24, at 9.6% growth. The full year production of iron ore in FY24 is likely to break the production record of 258 MMT achieved in FY23. Showing a similar trend, limestone production has increased from 366 MMT during the 11-month period April-Feb of FY23 to 407 MMT during the corresponding period of FY24, at 11.2% growth, and has already surpassed the full year production record of 406.5 MMT achieved in FY23.

In the non-ferrous metal sector, production of primary aluminium metal has increased from 37.11 lakh ton (LT) during the 11-month period April-Feb of FY23 to 38.02 LT during the corresponding period of FY24, at 2.5% growth. The full year production of primary aluminium in FY24 is likely to break the production record of 40.73 LT achieved in FY23.

India is the 2^nd largest aluminium producer, 3^rd largest lime producer and 4^th largest iron ore producer in the world. Healthy growth in production of iron ore and limestone reflects the robust demand conditions in the user industries viz. steel and cement. Coupled with the high growth in aluminium, these growth trends point towards strong economic activity in user sectors such as energy, infrastructure, construction, automotive and machinery.