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05-Dec-2011

Year 2001 2002

Production 851 904

CAGR -6.23%

2003 2004 2005 2006 2007 2008 2009 2010

970 1072 1144 1247 1346 1327 1229 1412

6.76% 8.00% 7.68% 7.94% 7.94% 6.55% 4.70% 5.79%

(Source : World Steel Association)

05-Dec-2011

Year 2007 2008 2009 2010 2011 2012

Developed countries Cons. Inc/Dec 473 447 299 373 392 407 --5% -33% 25% 5% 4%

Emerging countries Cons. Inc/Dec 750 759 835 910 967 1034 -1% 10% 7% 6% 7%

(Source: World Steel Association)

Year

Consumption (MT)

2015

1597

2020

1813

(Source : TFE Steel Corporation)

05-Dec-2011

Year

Developed Countries 44%

Emerging Countries 56%

2005

2020

38%

62%

Iron Ore Availability in India


In India about 25.25 billion tonnes of Iron Ore available Out of that 7 billion tonnes are proven reserves and balance 18 billion tonnes are probable and possible reserves. Out of that 14.63 billion tonnes are hematite and 10.62 tonnes are magnetite. billion

Magnetite ore, 85% of the total reserves are in ecologically and environmentally sensitive forest region.

05-Dec-2011

Country-wise Iron Ore Reserves


Rank

Country Ukraine Brazil Russia China Australia India Kazakhstan USA

Reserves
(Billion tons)

Population (Millions) 48 186 144 1300 20 1200 15 296

Per-capita
Reserves(T)

1 2 3 4 5 6 7 8

68 62 56 46 40 25 19 15

1416 333 389 36 2000 21 1267 51

Top 10 Iron Ore Producing Countries in the World -- 2010


Rank 1 2 3 4 5 6 7 8 9 10 Country China Australia Brazil India Russia Ukraine South Africa USA Canada Iran
World Production 2400 MT

Prodn. (MT) 900 420 370 260 100 72 55 49 35 33

% 37.5% 17.5% 15.4% 10.8% 4.2% 3.0% 2.3% 2.0% 1.5% 1.4%

05-Dec-2011

NMDCs share in Iron Ore Production in India.


Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 INDIA (MT) 154.43 187.70 213.25 212.96 218.64 212.61 NMDC (MT) 22.92 26.23 29.82 28.52 23.80 25.19 % 15% 14% 14% 13% 11% 12%

)
The 2nd Surge The Early Years The 1st Plateau The 1st Surge The 2nd Plateau

CAGR 5 %

CAGR 2 %

CAGR 7%

CAGR 1 %

CAGR 7 %

WW 1

Great WW 2 Depression

Oil Crisis

Fall of USSR

Asian Financial Crisis

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
10

05-Dec-2011

Crude Steel Production in India


Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Cap.(MT) 51.17 56.43 59.85 66.34 72.96 75.46 Prodn. (MT) 46.46 50.81 53.86 58.44 64.88 50.59 (upto Dec) Utl. 91% 90% 90% 88% 89% 89%

India is currently 5th largest producer of crude steel in the world (China, Japan, USA, Russia & India)

Indias Projected Requirement of Iron Ore for Steel Industry

Requirement

2015

2020

2025

2030

India steel demand (MTPA) CAGR @7.0%

90

126

175

245

India Iron Ore demand (MTPA)

171

240

330

465

05-Dec-2011

Proven reserves of Prime Coking Coal in India are about 4.6 BT, which is 4.4% of total proved coal reserves of about 105.8 BT.

Proven Coal Reserves


Prime Coal Medium Non-Coking Coal Semi-coking Coal

- 04.4% - 11.8% - 83.3% - 0.5%

Limestone Reserves in India


(Figures in Billion Tonnes)

Grades BF SMS (OH) SMS (LD) SMS (OH+LD mixed) SMS & BF mixed Total

Proved 2.00 0.51 0.16 -0.13 2.80

Probable 1.24 1.91 0.02 0.06 0.20 3.43

Possible 11.88 4.15 0.09 0.17 1.58 17.87

Total 15.12 6.57 0.27 0.23 1.91 24.10

05-Dec-2011

Challenges and Issues:


Scarcity of coking coal: Coking coal is a key raw material for production of steel. There is significant supply demand gap in the coking coal market. India is net importer of coking coal, imported 23mt of coking coal in 2010 to meet its total requirement of 40mt. India coking coal requirement is expected to reach 90mt by 2020. India is looking for joint ventures (or) acquisition to secure coal assets.

Expansion of raw material sources. Diversification of production processes.

Promote Infrastructure facilities (Transport, Water & Power)


Promote Environment friendly Technologies. Limestone reserves are adequate. But due to logistics and environmental reasons, shore based plants dependence will continue on imports. Long term tie up to meet the growing requirement . Development of large mines for dolomite.

05-Dec-2011

Forecast Steel demand by region-wise. Address Climate change. Support Training and education. Control Pricing Mechanism Technologies for steel making from low grade raw materials needs to be developed on commercial scale Delays in acquiring clearance for projects.

Technological Initiatives

Environment

Iron ore may need imports in long run. Exports to be capped or banned. Dependence on coal will continue to be on imports. Coal block acquisition abroad and long term tie up with foreign supplier. Limestone reserves are adequate. But due to logistics and environmental reasons, shore based plants dependence will continue on imports. Long term tie up to meet the growing requirement. Development of few large mines for dolomite needed Above all, the logistics at ports and inland transportation by rail to be augmented to match the growth.

05-Dec-2011

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