State-owned miner NMDC Limited reported an 8% year-on-year increase in iron ore production to 4.04 million tonnes (MT) in September. This rise came despite heavy rainfall and flood-related disruptions in Bastar, Chhattisgarh, which affected the company's mining operations.
Although production increased, iron ore sales fell nearly 10% to 3.51 MT in the same month. The decline was caused not only by mining challenges but also logistical issues in evacuating and transporting the ore from mining sites. Flooding and heavy rains disrupted evacuation efforts, leading to stockpiles accumulating at the mines.
The buildup of stock limited NMDC's capacity to convert higher production into sales and shipments. Consequently, despite production growth, the company encountered logistical obstacles that hindered sales volumes and ore movement during September.
