NMDC’s iron ore output rose 8% in Sept to 4.04 MT, sales dip
State-owned miner NMDC reported an 8% year-on-year increase in iron ore production for September, reaching 4.04 million tonnes despite operational challenges. However, sales declined by 10% due to heavy rainfall and flooding in Chhattisgarh that disrupted railway freight movement.
Why it matters
As a major iron ore producer, NMDC's supply chain disruptions highlight the vulnerability of industrial logistics to extreme weather events, which can impact the broader steel manufacturing sector.
State-owned miner NMDC reported iron ore production rose nearly 8% year-on-year to 4.04 million tonnes in September, while sales declined almost 10% at 3.51 MT.
Heavy rainfall and flood-related disruptions affected mining and evacuation operations in Bastar, Chhattisgarh. The production potential was also constrained during September as evacuation difficulties led to stockpiles building up at its mining complexes, the company said.
From September 24, freight movement has been affected as flooding on railway tracks disrupted evacuation and supply of iron ore. A few portions of the railway tracks were washed away due to the flooding and restoration and repair work is being undertaken by the railways to resume freight movement, it said.
For the six months ended September, production stood at 27.27 MT, an increase of nearly 23% compared to 22.20 MT year earlier. Sales in the first half totalled 22.23 MT, same as in the corresponding period.
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