Indian miner NMDC's China exports hindered by logistics

29 Sep 2023 CW Team

India's National Mineral Development Corporation (NMDC) is currently grappling with logistical obstacles that are impeding its ability to export low-grade iron ore to China, a key market for the country's iron ore exports, according to a source familiar with the situation who spoke to Reuters.

As of now, NMDC has not responded to a request for comment made by Reuters regarding the issue. The source, who opted to remain anonymous given the confidential nature of the matter, revealed that a critical shortage of railway rakes for transporting the ore within India is significantly impacting the export process.

China is a vital customer, accounting for approximately 80% of India's total iron ore shipments. Low-grade iron ore produced in India is primarily directed towards international markets since the majority of domestic steel producers in India prefer high-grade iron ores.

In a separate development, NMDC is reportedly progressing towards obtaining forest clearances for diamond mining activities in the central Indian state of Madhya Pradesh, as disclosed by the same source. The diamond mine is known to yield approximately 10 carats of diamonds for every 100 tonnes of Kimberlite processed, according to information available on the company's website.

These developments reflect NMDC's efforts to navigate challenges and expand its mineral exploration and export ventures on multiple fronts.

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