Indian Iron Ore Output Could Fall by Almost a Third this Year

Supreme Court ordered the closure of mines will have impact on domestic and international market, and the current iron ore prices have been falling, due to the major producer in Australia and Brazil increased excess supply and market the main buyer expressed concern about China's capacity to absorb excess production.

Index of iron and Steel company (The Steel Index) said on Friday, delivery to tianjin port benchmark iron ore price at $100.7 a tonne.

Affected the mine is located in the eastern state of Orissa (Orissa), it is one of the three major iron ore production state of India. Others in the western states Goa (Goa) and the southern state of Karnataka (state).

Late Friday, the Supreme Court ordered 26 mining licence holders to apply for license, will be closed before the new government permission. The mine ore a total annual capacity of about 40 million tons.

Orissa (Orissa) and a total of 56 mines has become the largest production, due to mining ban makes other nations stop illegal mining.

Indian mining union (Federation of Indian Mineral Industries), vice chairman of Basant Poddar said: "this will cause serious influence to the Indian iron ore production, steel production will be affected thereby."

He said, the court ordered the fiscal year is likely to mean that India exports will be close to 15 million tons last year, increase in mining ban part to relax will allow production to about 22 million tons of expected darkened.

India in the 2009-2010 annual export 118 million tons of iron ore, after exports fell, the affected by the ban and the new production licensing delays.