Indian-based company Sandur Manganese and Iron Ore Limited (SMOIL) has received approval from the state to increase manganese ore output from 286ktpy to 582ktpy. 

The planned increase in ore production will be met with an increase in manganese ferroalloy production and increased renewable power generation, pending approval from the Karnataka states pollution control board.

India is currently a net importer of manganese ore with a 51% self-sufficiency ratio for manganese ore production. Ferroalloy production is the main consumer of ores, feeding the steel industry. At present, up to 40% of alloys produced in India are for the export market, with FeMn and SiMn exports ramping up 50% since 2020, filling a gap amid global supply constraints and energy issues.

The announced increase in ore and ferroalloy production coincides with India’s National Steel Policy 2017, which aims to increase India’s steel-making capacity to 300Mtpy by 2030. The driving force behind India’s increased steel capacity is largely related to India’s construction expansion, and modernisation of roads, rail networks and ports, as well as India’s vie for becoming the preferential manufacturing hub of the world. With China’s steel and construction market reaching a plateau, India is likely to replace China as the main driver of growth in the global steel industry.