MOIL Limited registers best-ever August production amid market volatility, eyes growth through exploration

MOIL Limited, India’s leading manganese ore producer, has achieved its highest-ever production in August 2024, reaching 1.24 lakh tonnes. This achievement marks a significant milestone for the state-owned company as it continues to expand its production capabilities despite challenging market conditions marked by international price volatility and global economic uncertainties.

Sustained Growth in Challenging Market Conditions

During the first five months of the current financial year (April to August 2024), MOIL recorded a cumulative production of 7.24 lakh tonnes, representing a 7% increase over the corresponding period last year. This growth has been achieved despite the complex environment of fluctuating global commodity prices and economic instability, which have impacted many sectors, including mining. The company maintained steady sales figures, reaching 5.92 lakh tonnes for April-August 2024, nearly mirroring last year’s performance during the same period.

Revenue Growth and Strategic Focus on Exploration

MOIL’s revenue from operations has also seen a substantial rise, growing by approximately 11% over the same period last year. This growth underscores the company’s strategic focus on optimizing its operations and tapping into new market opportunities despite economic pressures. An essential part of this strategy has been a significant increase in exploration activities. By August 2024, MOIL had completed 46,585 meters of exploratory core drilling—1.6 times more than the previous year. This surge in exploration is aimed at expanding its resource base to secure future growth and maintain its position as a leader in the manganese ore market.

Leveraging Mining Operations Across Key Regions

MOIL operates several mines located in Maharashtra and Madhya Pradesh, with operations ranging from underground to open-cast mining. These mines are strategically crucial for the company’s ability to meet both domestic and international demand for manganese ore, a vital component in steel manufacturing and other industrial processes. Under the administrative control of the Ministry of Steel, MOIL continues to focus on efficiency and expansion, especially in light of the high demand for high-quality manganese in both the domestic and international markets.

Future Outlook

MOIL’s robust performance amidst a volatile market landscape reflects its resilience and adaptability. The company’s increased focus on exploration and sustainable mining practices positions it well for future growth. MOIL’s ongoing efforts to maximize production, optimize operations, and explore new reserves will likely continue to bolster its performance in the coming quarters, offering a positive outlook for stakeholders.

MOIL’s commitment to growth and sustainability, coupled with strategic investments in exploration and operational efficiency, underscores its ambition to remain a dominant player in the manganese ore sector. As the company navigates market challenges, its ability to maintain steady production and revenue growth remains a testament to its strategic planning and operational strength.