India’s iron ore production is expected to grow at 5 per cent annually during 2016-2020 and hit 198.8 million tonnes by 2020, BMI Research today said.
Globally, the research firm said the iron ore market will stay in surplus over its forecast period to 2020. Expanding output in Brazil and Australia and lower steel demand in China will remain the drivers of global oversupply. India’s mining sector will experience solid growth, primarily boosted by the country’s positive reforms and vast mineral reserves, BMI Research said in a statement. Despite this, the sector will continue to face challenges due to the country’s inadequate operating environment, mining royalties and low metals prices, which will prevent India from reaching its full growth potential, it added. “We forecast India’s iron ore output to grow from 159.9 MT in 2016 to 198.8 MT in 2020. This represents average annual growth of 5 per cent during 2016-2020…,” it said.