Bhubaneswar | Feb 24, 2016: The Odisha Mining Corporation (OMC) will surrender to the state government four gemstone blocks citing low market demand due to poor quality of ore.

The OMC requested the steel and mines department to cancel lease deed of Jillingdhar, Hinjlibahal and Malipada gemstone blocks in Kalahandi district and Budhapada block in Nuapada district.

"After a preliminary study, we found that the quality of gemstones found in these four blocks to be very poor. So, the OMC board of directors has decided to surrender the four mines to the state government," OMC managing director, Girish S N told reporters after a meeting with chief secretary A P Padhi.

Sources in the steel and mines department said the state government would put the four gemstone blocks on auction after the OMC surrenders. Of the 35 mines belonging to OMC, only six iron ore and chromite blocks are in the operational stage. Due to lack of statutory clearances, expertise and equipment, the state PSU has failed to extract ore from all the mines.

The mineral blocks of OMC which are in an operational stage are four iron ore blocks - Kurmitar (Sundargarh), Gandhamardhan-B and Roida Keonjhar, Daitari (Keonjhar/Jajpur) and two chromite blocks - South Kaliapani and Sukrangi both in Jajpur districts.

"To scale up our production, we are going to partner with international agencies having expertise in mineral extraction. Our target is to produce 10 million tonne (MT) of ore by 2016-17 fiscal end," said Girish, adding the state PSU aims to produce 20 MT of ore by 2019-20.

The year-wise ore production of the state PSU was 2.4 MT (2013-14), 3.9 MT (2014-15) and 6.55 MT (2015-16). "By February 15, we have produced 5.6 MT of ore and we hope to achieve the target for the year easily," Girish added. Increasing ore production of OMC is crucial as a number of sponge iron and steel plants, that don't have captive blocks, depend on it for ore.

(Source: http://timesofindia.indiatimes.com/)