FY24 Records Highest Production in Mining Sector

Context

In February 2024, the mineral production index was 139.6, showing an 8.0% increase compared to February 2023. The cumulative growth of the index for the 11-month period from April to February in fiscal year 2024 was 8.2% higher than the same period in the previous year.

Key Points:

• In the month of February of 2024, good non-fuel minerals recorded good performance such that Bauxite, Chromite, Copper Concentrate, Gold, Zinc Concentrate, Manganese Ore, Phosphorite, Diamond, Graphite (R.O.M.), Limestone, and Magnesite witnessed increases compared to the same period last year.
• Iron Ore and Limestone are mainly the end products and they sum up to 80% of the market cap of MCDR.
• The Aluminium metal production also has headed upward in the Non-ferrous metal industry.

Details on the development of Mining Production

• • The index of mineral production for February 2024 was 139.6, which is 8.0% higher compared to the level in February 2023. 
  • The cumulative growth of this index for the 11-month period of April–February of FY24 over the corresponding period of the previous year was higher by 8.2%.
  • Key Minerals and Metals:
    • Iron Ore: The production has gone up from 230 MMT during the period of April–February 2023 to 252 MMT in the same period of FY24(9.6% growth) during the same period. The record has been set in FY23, with the production of 258 MMT of iron ore. It is highly likely that this will be broken in the current FY24.
    • Limestone: From April to February period of FY23, the production resulted in 366 MMT while in FY24 production was 407 MMT that is 11.2 % growth and outperformed the full-year record of 406.5MMT in FY23.
    • Aluminium: In aluminium non-ferrous metals production, the primary aluminium metal production has also increased to 38.02 LT for FY24 from only 37.11 LT for the period of April–February FY23. The growth is 2.5%. The whole-year output for the production of primary aluminium in FY24 is announced to go beyond the benchmark of 40.73 LT in FY23.
• Global Standing

India holds a prominent position in the global mining sector, being the:

• 2nd largest producer of aluminium.
• 3rd largest producer of lime.
• 4th largest producer of iron ore.
• Economic Impact: A resilient expansion in the production of iron ore and limestone, which are major minerals, indicates an improved demand in user industries that are steel and cement. Hence the exponential rise of aluminium production together with these features shows that many sectors, particularly energy, infrastructure, construction, automotive, and machinery, are getting developed at a higher rate.
• Government Initiatives: The Government has already demonstrated its dedication to creating a green mining industry with a self-reliant economy of ‘Atma Nirbhar Bharat’, and this has become a driving force behind this record output. Initiatives such as the promotion of ecological mining and its technological modernization were also responsible for this, subsequently.

Conclusion

The record production in the mining sector for FY24 is a testament to India’s growing capabilities and its pivotal role in the global mining industry. This achievement is expected to have a positive ripple effect across various sectors of the economy.

Source: PIB

UPSC Mains Practice Question

Q.Discuss the key challenges and opportunities faced by the mining sector in India and propose measures to ensure sustainable development in this industry.

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