Bhubaneswar | Jul 30, 2015: The state government has decided to move the Union mines ministry for reservation of the prized Khandadhar iron ore deposits in favour of its PSU, Odisha Mining Corporation (OMC).

Interestingly, the prospecting license for this mine was recommended in favour of South Korean firm Posco, which intended to set up a mega steel plant in the state. But the hope Posco getting the mine on preferential basis has withered following the enactment of new Mines and Minerals (Development & Regulation) Act, 2015 which has stipulated allocation of all mineral resources only through the auction route.

"The high level committee that met recently reached unanimity that the Khandadhar mines should be reserved for OMC. The central mines ministry would be approached after we are through with all the formalities on the blocks to be reserved for OMC and the ones to be put to public auctions. We would seek reservation for a part of the Khandadhar lease area," said a government official.

The state government had recently notified a committee under its development commissioner U N Behera to streamline auction of major minerals. This committee had its maiden meeting on July 28. "Both Mineral Exploration Corporation Ltd (MECL) and the state directorate of geology are on the job of exploration of over 50 mineral blocks," the official said.

The committee's mandate is to monitor the preparatory work relating to auction of major mineral concessions including conduct of differential global positioning system (DGPS) survey and preparation of tender documents.

Also, the committee would advise the government on earmarking of leases for reservation in favour of PSUs, for auction of MLs (mining leases) and auction of PL cum ML. The committee would advise the government on prioritisation of mineral exploration work to facilitate auction/reservation of leases.

Mineral auctions in Odisha are expected to take off by the end of October this year.

Out of 16 blocks listed for auctions, seven have been explored up to G2 level.

These are Kottametta and Uskalvagu limestone block (Malkangiri), Sagasahi-Ghoraburahni iron ore block (Sundargarh), Sagasahi East Iron ore block (Sundargarh), Dholta Pahad Iron ore block (Sudhargarh), Balia Pahad iron ore (Sundargarh), Jhumuka-Pathiriposhi iron ore block (Sundargarh) and Garamara limestone mines (Nuapada).

The rest nine blocks- Mankarnacha iron ore (Sundargarh), Pureibahal iron ore (Sundargarh), Chandiposhi iron ore (Sundargarh), Lasarda manganese block (Keonjhar), Pacheri manganese block (Keonjhar), Kendudihi-Parulipada manganese block (Keonjhar), Khandadhar iron ore reserve (Sundargarh), Thakurmunda manganese mines (Sundargarh) and Utsavpalli-Thakurpalli manganese mines (Bolangir) have been explored up to G3 level.

(Source: http://www.business-standard.com/)