India: Mineral Production Grows by 8% in February, Compared to Last Year

The growth in mineral production in February 2024 underlines the strength and potential of India’s mining and quarrying sector.

The mineral production metrics for February 2024 have marked an impressive upturn, with the index of mineral production in the mining and quarrying sector reaching 139.6, an 8.0% rise compared to February 2023. Such growth not only signifies a substantial boost from the previous year but also highlights the continuous improvement with a cumulative increase of 8.2% from April 2023 to February 2024.

Let’s delve into the top seven facts that you should know about this notable growth in India’s mineral production.

1. Overall Growth in Mineral Production

February 2024’s figures are not just numbers; they represent a significant enhancement in the country’s mineral output. The index, based on the 2011-12 base year, shows a steady rise, underscoring a robust growth pattern in the sector that is pivotal for the country’s industrial backbone.

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2. Coal and Iron Ore Lead the Production

Coal production stood at a remarkable 966 lakh tonnes, while iron ore production was also noteworthy at 244 lakh tonnes. These figures are vital as they represent key components of the country’s energy and industrial sectors respectively, driving substantial portions of the economic activities.

3. Surge in Precious and Industrial Metals

Remarkably, the production of gold surged by an impressive 86%, indicating not only increased extraction but also potentially higher exploration activities. Similarly, copper concentrate production rose by 28.7%, and chromite, integral for stainless steel production, also saw a 21% increase. These growths reflect expanding industrial activities and possibly, improved mining technologies and efficiencies.

Production Levels of Important Minerals in February 2024

This table provides a detailed breakdown of the production levels of various minerals in February 2024, reflecting the substantial outputs that contribute to different sectors of the economy.

4. Significant Rises in Bauxite and Other Minerals

Bauxite production witnessed a 21% increase, aligning with the global demand for aluminum, crucial for various industries including automotive and packaging. Other minerals like phosphorite and limestone, essential for agricultural and construction sectors, saw rises of 19% and 13% respectively.

5. Steady Increase in Energy Resources

The production of natural gas utilized marked an increase of 11%, while petroleum (crude) production grew by 8%. These increments are essential in the context of the country’s energy security and the ongoing efforts to enhance energy production capacities.

6. Challenges in Iron and Lead Concentrate Production

Despite the overall positive growth, not all minerals shared the same fate. Iron ore slightly declined by 0.7%, possibly due to regulatory or environmental challenges, and lead concentrate decreased by 14%, which might indicate fluctuating market demands or operational hurdles.

7. Future Outlook and Government Policies

The sustained growth in mineral production suggests a positive trajectory influenced by government policies aimed at boosting the sector. The ongoing reforms and strategic initiatives like enhancing mining technologies, ensuring sustainable practices, and bolstering exploration activities are expected to further propel this growth momentum.

Growth Rates of Important Minerals for February 2024 Compared to February 2023

This table encapsulates both positive and negative growth trends among various minerals, highlighting significant shifts in production over the past year.

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7.41 percent Increase in Coal Production in April Compared to Last Year

India’s coal production for April 2024 reached 78.69 MT (Provisional), with a growth rate of 7.41% compared to the corresponding period in the previous year, which was 73.26 MT. During April 2024, Coal India Limited (CIL) achieved a coal production of 61.78 MT (Provisional), marking a growth of 7.31% compared to the same period last year when it was 57.57 MT. Additionally, coal production by Captive/others in April 2024 stood at 11.43 MT (Provisional), reflecting a growth of 12.99% from the previous year, which was 10.12 MT.

India’s coal dispatches for April 2024 reached 85.10 MT(Provisional) up by 6.07% compared to the same period last year when it was recorded at 80.23 MT. During April 2024, CIL dispatched 64.26 MT (Provisional) of coal, with a growth of 3.18% compared to the corresponding period of the previous year when it was 62.28 MT. Additionally, coal dispatch by Captive/others in April was recorded at 15.16 MT (Provisional), reflecting a growth of 26.90% from the previous year, which was 11.95 MT.

Overview of India’s Coal Production and Dispatches in April 2024

Production Data

Dispatch Data

This table encapsulates the production and dispatch figures for coal in India for April 2024, highlighting the growth in both sectors compared to the previous year. The data reflects notable increases, particularly in the production and dispatch by Captive/Others, showing a substantial rise in activity within this segment.

(India CSR)