World Iron Ore Scenario

• Three largest companies Cia Vale Do Rio Doce

(CVRD), Rio Tinto and BHP-Billiton together control
about 30% of global production.

•Top 4 iron ore suppliers account for 65% of seaborne

iron ore trade - CVRD,Rio Tinto, BHPB & Mitsui

•Top 5 steel makers account for 16% of production -

Arcelor/NSC/Posco/LNM(Ispat)/Corus

• China is the clear driving force in the global trade

iron ore market
• China’s GDP growth due to massive industrialization,
urbanization, infrastructural development supported
by massive steel industry expansion.
• Existing blast furnace capacity of 220 million tonnes
likely to increase by about +90 MT by 2005 and +170
MT by 2010.
• Iron ore production in China is likely to increase to
about 350 MT in 2-3 years and steel consumption to
about 450 MT by 2010 and 885 MT by 2020.
•This will catapult Asian steel output to almost match
the rest of the world’s entire production.
•Global sea borne trade has grown from 119 MT
between 1976-1998 to 169 MT between 1999-2004. (Sea
borne trade during 2003 was 523 MT provisionally).
Analysis of China market of iron ore
• Expected rise in iron ore demand by about 240 MT
between 2004 and 2010.
• Rio Tinto is adding 53 MT by 2006 and another 37
MT by 2010.
• BHP-Billiton is adding 35-40 MT by 2006/07 and a
further 25-30 MT by 2010 (71.5 MT produced in 2003).
• CVRD is adding 85 MT in 2006 and 100 MT in 2007
from its northern system and 140 MT by 2008 from its
southern system (186 MT produced in 2003 from both
the systems).
• 15 MT will be added by S Africa.
• Indian share in global market will decline due to
increase in its domestic consumption.
• Global iron ore consumption continues to grow
over at least next five years.
• Price environment will remain buoyant.
• Only after 2006, there is a possibility of easing
the pressure on supply provided the
development plans envisaged by the producers
are also put into action.
• Chinese growth expected to go from 9.1% to
8.2% from next year onwards and thereafter
flatten out at 7%.
 Indian Iron Ore Resource

• Large potential of iron ore.

• Vast resource of about 17.7 billion tonnes

(Hematite 12.32 billion tonnes and Magnetite 5.4
billion tonnes).

• Out of 624 mining leases, only 225 working

mines (during 2002-03).

•From the estimated 12745 MT as on1.4.1990, the

resources have increased to 17712 MT as on
1.4.2000.
 PROJECTEDDEMAND

Forecastedironore requirement, whichalso

includes exports at current levels:
122milliontonneby2006-07
156milliontonneby2011-12

Domestic ironore requirement:

84 milliontonneby2006-07
114milliontonneby2011-12
 RESOURCES IN VARIOUS SECTORS IN INDIA
VIS-À-VIS PRODUCTION

(Qty in Million Tons)

Present Production
Sector Resources
(Approx.)
Zone A- Jharkhand & Orissa 7458 37
Zone B- Chhatisgarh 3588 24
Zone C- Bellary Hospet 1315 18
Zone D- Goa Redi 1091 24
Zone E- Karnataka (Magnetite) 3843 7
TOTAL 17295 110
 COMPANY MINES PRODUCTION CAPACITY
( Million Tonnes )
NMDC Bailadila, Chattisgarh 17
Donimalai, Karnataka 5
SAIL Jharkhand, Orissa & Chhatisgarh 24
KIOCL western Ghat 7
Other Govt Undertakings 3
Total Public Sector 56
GOA 23
TISCO & OTHERS Jharkhand, Orissa & Karnataka 31
Total Private Sector 54
Grand Total 110
 NMDC’s Present Production
• Bailadila Sector:
Deposit 14/11B: 7 million T
Deposit 5: 7 million T
Deposit 10/11A: 3 million T
• Donimalai Sector:
Present Capacity: 5 million Tonne
 NMDC Future Plans

•In the year 2004-05: 22 million T (est.)

•By year 2010: 30 million T

(By adding capacity viz. 11B, Kumaraswamy

and augmenting production from 10/11A)
Thanks