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ICRA has shared his forecasts on iron ore mining in India

ICRA has shared his forecasts on iron ore mining in India

Indian state rating company ICRA has made their predictions. They relate to the 2019/2020 financial year. So as a result the volume of production of iron ore in India will grow. The growth will be over 7% in comparison with the current year. In quantitative terms, production volume will amount to 225 million tons. However, the tendency to not last long. After the growth will come during a sharp drop. The reason for this is called the end of the term of the license. This refers to permission to use the iron ore deposits. It concerns not all, but many.

The company, which is developing the field, may not automatically renew the license. It is forbidden by Indian law. When the license period runs out, you need to hold a new auction. The winner is obliged again to get all the permissions. They give regular and environmental authorities. This also applies to the former owners, who again won the auction. As practice shows, the process of obtaining the licence to last for 3−4 years. Sometimes this process may take a little longer.

In March 2020 the validity of the license number ends. They relate to large deposits. While will be issued new documents, the company will be forced to stand. Because the volume of production of iron ore in India to decline. The reduction will be about 50−80 million tons per year. The Federal government did direct instructions. They demanded to take measures for early auctions. It is necessary to reduce interruptions. However, States did not take any initiative. Because companies are forced to increase the volume before the expiry date of permissions.

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