Orrisa Post reported that Jajpur Odisha based Kalinganagar Industries Association and the Associated Chamber of Commerce and Industries of India have given a proposal to Odisha Chief Minister Mr Naveen Patnaik to take steps to bring the mines that have been auctioned but are yet to be made operational under Odisha Mining Corporation. They said that the present crisis faced by the steel plants due to shortage of iron ore could be solved once the mines are brought under the OMC and made operational. According sources, OMC has to increase its production from 13 million tonnes annually to 26 million tonnes to make up for the scarcity and and control the price of iron ores. They have demanded that OMC produce 11 million tonnes iron ores annually from its Jiling and Guali mines and 15 million tonnes annually from Daitari, Gandhamardan and Koida mines.

 

According to available data, iron ore production in the state was 142 million tonnes in the financial year 2019-20. In 2020-21, it reduced by 31 million tonnes and stood at 111 million tonnes. Similarly, 17.4 million tonnes iron ore was exported in the financial year 2019-20. Out of the total production of 111 million tonnes iron ores in 2020-21, OMC had produced only 13 million tonnes. On the other hand, steel plants owning mines like Tata Steel, SAIL, JSW Steel, ArcelorMittal and JSPL had produced 65 million tonnes.

 

In 2020-21, exports increased to 29 million tonnes, resulting in a scarcity of 42 million tonnes iron ore and an inordinate increase in its price. While the price of iron ore was INR 2,200 a tonne in June 2020, it increased to INR 12,000 in June 2021.

 

At the same time, the industrial houses have expressed their concern over some industries that have been awarded mines in auctions but are yet to start production. The KNIA and Associated Chamber of Commerce and Industries of India have proposed that these mines should be brought under OMC and production be started to tide over the situation.

 

source：SteelGuru Business News