Bhubaneswar | May 04, 2016: Iron ore production in Odisha touched an all-time high of 80.86 million tonne (mt) in 2015-16, the highest in last 10 years, recovering from a lowly 47 mt in FY15.
Production witnessed a spurt of nearly 50 per cent as the state government passed swift orders for reopening of many iron ore mines that were under shutdown because of the Supreme Court order.The state orders for extending validity of leases were prompted by the amended Mines and Minerals-Development & Regulation (MMDR) Act.
Production aside, iron ore despatch in Odisha was also impressive at 72 mt in last financial year.
"The state government's policy to pre-empt iron ore to the extent of 50 per cent produced by the merchant miners and Odisha Mining Corporation's (OMC) long-term linkage with steel and end use plants improved offtake", said a senior government official.
According to a report released by Religare on the status of mining in Odisha, the state's iron ore production has returned to the level of FY14 when production was 78 mt. Iron ore output in this financial year is expected to look up as the Supreme Court has asked the Odisha government to consider resumption of the balance 102 mining leases.
Moreover, the Odisha High Court, in a recent order, allowed Jindal Steel & Power Ltd (JSPL) to lift inventory (10 mt) from the Sarda Mines.
Assuming the Sarda mines reopen and the government nod for other leases comes through, iron ore supply in the state will only increase, the report said.
(Source: http://www.business-standard.com/)