India Can Surpass Brazil, China in Iron Ore Output: Vedanta Chairman
India can become the world's second-largest iron ore producer, surpassing mining giants Brazil and China, said Vedanta Group Chairman Anil Agarwal. Addressing a gathering on Tuesday, Agarwal stressed the country's huge iron ore reserves and the economic potential hidden beneath.
Drawing attention to India's recent growth, he observed iron ore production for April-January of FY 2024-25 as going up by 3.5% at 236 million metric tonnes (MMT), while the corresponding period last year produced 228 MMT. Total production of FY 2023-24 on provisional figures was around 275 MMT, representing a growth of 7.5% year-on-year, the data from Ministry of Mines states.
Agarwal sketched out that with investments and strategic planning, India would be able to increase production to 700 million tonnes a year. "With our enormous reserves, we can produce 700 million tonnes a year and become the second largest after Australia. This is highly possible", he stated. He further stated that such growth would greatly benefit India's economy through regional development, increased revenue, and job creation.
Presently, India is the world's fourth-largest producer of iron ore, preceded only by Australia, Brazil, and China. Steel and iron, which mostly come from iron ore, are integral to the infrastructure and daily use products like cars, electronics, and homes, he pointed out.
India has an estimated reserve of 33 billion tonnes of iron ore. Some of the large-scale producers are NMDC, SAIL, Odisha Mining Corporation, and Tata Steel. Odisha produces the most, accounting for 54% of the country's production, followed by Karnataka (16%) and Chhattisgarh (15%).
Agarwal also emphasized the socio-economic consequence of iron ore mining in mineral-rich states such as Odisha, Chhattisgarh, and Jharkhand. According to him, "These states have per capita incomes below the national average. With proper utilization of their mineral wealth, they can easily double the national average".
Vedanta’s subsidiary, Sesa Goa Iron Ore, operates in key iron ore belts of Goa, Karnataka, and Odisha. As India eyes a stronger global presence in mining, Agarwal urged for a visionary approach to unlock the sector’s full potential.
