40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE

CAPETOWN, SOUTH AFRICA

Indian Steel Sector

Opportunities for South African
Manganese Industry

Lokesh Chandra, IAS

Joint Secretary to Govt. of India
Ministry of Steel
1
40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

INDIAN STEEL SECTOR

The Indian Steel Sector has been witnessing growth in the

past few years.

India is 4th largest producer of steel in the world.

India is the worlds largest producer of Sponge Iron.

The steel intensive industries such as infrastructure

development, construction, automobiles, etc. is poised to
rapidly grow.

These industries have demonstrated huge growth potential

for steel in the domestic market.

2
 40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

GLOBAL RANKING OF INDIAN STEEL

(In Million Tonnes)

World Crude Steel Production in 2013

Rank Country Production % Change Y-o-Y

1 China 779.04 8.722

2 Japan 110.57 3.113

3 United States 86.96 -1.962

4 India 81.21 4.709
5 Russia 69.40 -1.454

World crude steel production in 2013 is 1582 million tonnes up by 2.39% when compared to production of
1545 million tonnes in 2012
3
40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

SHARE OF INDIAN CRUDE STEEL

PRODUCTION

(In Million Tonnes)

Share of
Public Private
Year Total Private Sector
Sector Sector
(%)
2008-09 16.37 42.07 58.44 72%

2009-10 16.71 49.13 65.84 75%

2010-11 16.99 53.68 70.67 76%

2011-12 16.48 57.31 73.79 78%
2012-13 16.36 61.53 77.89 79%
2013-14 16.78 64.76 81.54 79.5%

4
40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

PROJECTED STEEL PRODUCTION ENVISAGED BY 2016-17

In million tonnes

PUBLIC SECTOR PROJECTS

Steel Authority of India Limited 20.75
Rashtriya Ispat Nigam Ltd. (Vizag Steel) 7.00
NMDC Ltd. 3.00
Total Public Sector 30.75
PRIVATE SECTOR PROJECTS
TATA 18.00
Jindal Steel Works (JSW) & Jindal Steel Plant Ltd. (JSPL) 23.20
Essar Steel 11.75
Bhushan Steel 6.45
Total Private Sector 59.40
Others 58.85
TOTAL 149.00
Source: Report of the Working Group on Steel Industry for the 12th Five year Plan (2012-2017)
5
 40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA
Country-wise Import of Manganese ore in India
2.5
(2.327)

(2.107)

2 (1.961)
Qty in million tonnes

1.5
(1.30)

1 (0.852)
(0.798)
(0.686)

0.5
(0.284)

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
OTHERS 0.012 0.123 0.099 0.056 0.146 0.214 0.289 0.124
BRAZIL 0.07 0.055 0.07 0.079 0.031
GABON 0.077 0.186 0.046 0.092 0.156 0.173 0.213 0.238
SOUTH AFRICA 0.001 0.067 0.36 0.36 0.579 0.936 1.007 1.266
AUSTRALIA 0.195 0.31 0.348 0.22 0.364 0.568 0.739 0.447
For 2013-14 the figure are extrapolated from actual of April 2013 to Dec. 2013 Source : DGFT
40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

EXPORTS OF MANGANESE ORE YEAR 2013

Malaysia Others
1.1 (4%) 1.9 (7%)
Brazil
South Africa
1.8 (7%)
9.8 (36%)

Ghana
2 (7%)

Gabon
3.4 (13%)
Australia
7 (26%)

TOTAL EXPORTS WORLDWIDE : 27 MILLION TONNES APPROX.

 40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA
COUNTRYWISE RESOURCES & PRODUCTION OF MANGANESE ORE

Country Resources Production

Million Tonnes in Mn content
Million Tonnes % Share Million Tonnes % Share

Australia 160 3 7.26 13

Brazil 51 1 2.44 4

China 100 2 23 40

Gabon 160 3 4.30 7

India 160 3 2.05 4

Kazakhstan 83 2 1.20 2

South Africa 4000 74 11.02 19

Ukraine 520 9 1.35 2

Others 141 3 5.085 9

Total 5375 100 57.705 100

Source: US Geological Survey/IMnI
40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA
WORLD PRODUCTION OF MANGANESE ORE (YEAR 2013)

Ukraine, 1.35
Ghana, 1.91 Kazakhstan, 1.20,
(2%) Malaysia, 1.10
(3%) 2%
(2%)
India, 2.05
(4%)
Brazil, 2.44
(4%)

ROW, 2.08
(4%) China, 23.00
(40%)
Gabon, 4.30
(7%)
Australia, 7.26
(13%)

South Africa, 11.02

(19%)

Source : IMnI Qty in Million Tonne

and % share in World Production
 40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

Export of Ferroalloys from India (Ferro Manganese /

Silico Manganese)
1.5

1.128 1.083
Qty in million tonnes

1 0.892

0.679

0.5 0.422
0.365

0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
For 2013-14 the figure are extrapolated from actual of April 2013 to Dec. 2013
Source : DGFT
40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

Given the intrinsic strength of the Indian economy, exhibited in the

resilience shown during the global economic crisis post 2008 and the
wide range of policy initiatives taken by the government over the
recent period, the economy will revert to the high growth path once
again.

This will open up significant opportunities in the steel sector in India

as also in the areas related directly or indirectly to it.

11
 40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA
1. With the targeted capacity of 300 million tonnes of crude steel in next 10-15 years , the
requirement of manganese ore will be around 10 million tonnes excluding manganese
ore requirement for export of ferro alloys.

2. With the anticipated increase in steel production as well higher export of Alloys the gap
between the Supply and Demand of Manganese ore will increase, necessitating higher
imports.

3. The Average grade of Mn. Ore produced in India is low (Mn 32-33%). This necessitates
imports of High grade Mn ore to blend with domestic quality of Mn ore for producing
Ferro/Silico Manganese required for steel Industry. Besides above, India is also a major
exporter in world for Silico Manganese.

4. The CAGR of import of Manganese Ore in India from South Africa during the last 7 years
is 186.45% (from 800 Metric Tonne in 2006-07 to 1.27 Million Tonne in 2013-14). The
trend is likely to continue.

5. There is a need for acquiring high/medium grade manganese ore property to supplement
the manganese ore requirement. South Africa is a potential destination considering the
high quality and quantity of its manganese ore resources.
40TH ANNUAL CONFERENCE, INTERNATIONAL MANGANESE INSTITUTE
CAPETOWN, SOUTH AFRICA

13
 To ask a question, 2 choices:
1. Raise your hand, or
2. Mail Alex at imniac@yahoo.com