India increased iron ore production to a historic high of 282 million tons in 2023, up almost 14% year-on-year.

The state of Odisha, which accounts for 56% of the country’s ore production, increased its output by 18% y/y last year – to 159 million tons.

Several factors contributed to the growth. Last year, state-owned mining companies NMDC and OMC saw a significant increase in production, while private Lloyds showed a 75% y/y increase.

NMDC, the largest iron ore producer in India, reported the best-ever production and sales of raw materials in the first half of FY2023/2024 (April-September 2023) and in the second quarter.

In July-September, the figures amounted to 8.85 million tons and 9.57 million tons, respectively.

In total, the eight largest mining companies in India produced more than 20 million tons in 2023.

Growth in steel production in the country is driving demand for iron ore. Consumption of this raw material is expected to grow by almost 9% in India in 2023, to about 228 million tons.

Miners also increased production due to rising export demand and higher prices, which, although relatively stable throughout the year, rose by 12% quarter-on-quarter to $128/t in Q4. In 2023, India’s exports of iron ore and pellets rose to a three-year high of over 44 million tons.

The recovery was facilitated, in particular, by the government’s decision to abolish the 50% export duty on all iron ore grades and 45% on pellets in November 2022.