India Poised to Surpass Brazil and China in Iron Ore Production: Vedanta Chairman

Anil Agarwal, Chairman of the Vedanta Group, stated on Tuesday that India has the potential to surpass Brazil and China to become the world's second-largest producer of iron ore.

Agarwal highlighted India's growth potential in the global iron ore market | Photo: Bloomberg

India's iron ore production for the period from April to January in 2024-25 increased by 3.5%, reaching 236 million metric tonnes (MMT), up from 228 MMT during the same period last year.

He explained how India could surpass Brazil and China in iron ore production by saying, "Given our huge reserves, we can produce 700 million tonnes per year and become the second largest after Australia, this is very much possible. The benefits this will bring to Bharat, in terms of economic growth, jobs and revenue, to government are massive."

Agarwal emphasized India's potential for growth in the global iron ore market and stated, "It is difficult to imagine life without iron and steel, which is made from iron. Our homes, our vehicles, our gadgets, all require iron and steel. Today, India is the 4th largest producer of iron ore in the world...Only Australia, Brazil and China produce more."

The preliminary estimate for iron ore production in 2023-24 stands at approximately 275 million tonnes, marking a 7.5 percent increase compared to the previous year, according to the Ministry of Mines.

Key producers of iron ore during this period included NMDC, SAIL, Odisha Mining Corporation, and Tata Steel Ltd. Odisha led production, contributing 54 percent of the nation's total iron ore output, followed by Karnataka at 16 percent and Chhattisgarh at 15 percent.

India possesses abundant iron ore reserves, estimated at 33 billion tonnes, which could significantly drive the country's global mining aspirations. The growth in mining is expected to foster development across various states, further supporting this vision.

"It will also lead to rapid development of states rich in iron ore like Chhattisgarh, Jharkhand and Odisha. At present, their per capita incomes are below the India average but, with their huge potential below the ground, can easily have double the India average. Let us be visionary and think big," Agarwal said.

Sesa Goa Iron Ore, a subsidiary of the Vedanta Group, is involved in the exploration, mining, and processing of iron ore in Goa, Karnataka, and Odisha.

(This Article was originally published by Mint)