Mining sector achieves record production in FY24

The Ministry of Mines has reported a remarkable increase in the production of key minerals and aluminium metal in the mining sector for the fiscal year 2023-24.

According to the data, the index of mineral production for February 2024 stood at 139.6, marking an 8.0% increase compared to February 2023. The cumulative growth of this index for the 11-month period of April to February of FY24 over the corresponding period of the previous year was higher by 8.2%. Several non-fuel minerals, including Bauxite, Chromite, Copper Concentrate, Gold, Zinc Concentrate, Manganese Ore, Phosphorite, Diamond, Graphite (R.O.M.), Limestone, and Magnesite, showed positive growth during February 2024 compared to the corresponding month of the previous year.

Iron ore and Limestone collectively contribute approximately 80% of th total MCDR mineral production by value. Production of these key minerals in the country has shown significant growth in FY24 as per provisional figures. Iron ore production increased from 230 million metric tons (MMT) during the 11-month period of April to February of FY23 to 252 MMT during the corresponding period of FY24, reflecting a growth of 9.6%. Similarly, limestone production increased from 366 MMT during the same period in FY23 to 407 MMT in FY24, showing an 11.2% growth and surpassing the full-year production record of 406.5 MMT achieved in FY23.

In the non-ferrous metal sector, production of primary Aluminium metal increased from 37.11 lakh tons (LT) during the 11-month period of April to February of FY23 to 38.02 LT during the corresponding period of FY24, indicating a 2.5% growth. The full-year production of primary Aluminium in FY24 is expected to break the production record of 40.73 LT achieved in FY23.

India ranks as the 2nd largest Aluminium producer, 3rd largest lime producer, and 4th largest iron ore producer in the world. The robust growth in production of iron ore and limestone reflects the strong demand conditions in user industries such as steel and cement. Coupled with the significant growth in Aluminium production, these trends indicate strong economic activity in sectors such as energy, infrastructure, construction, automotive, and machinery.