Steel industry stares at production disruption in 2020

Steel industry stares at production disruption in 2020
22/05/2019 , by , in ALLIED

A delay in the auction of iron ore mines, whose licences are expiring by March next year, could hit steel production significantly in the country, a report has cautioned.

Licences of 288 merchant mines, of which 59 mines are under operations, will expire by March next and if the auction of the mines is delayed it could significantly affect the steel production, the report by rating agency India Ratings (Ind-Ra) said.

Majority of these 59 blocks are iron ore mines situated in Odisha and Karnataka with around 85 million tonnes of approved annual capacity, the report highlighted.

Ind-Ra estimates that around 60 million tonnes of the actual production of iron ore from these mines could be disrupted.

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