Odisha to put on block three more iron ore mines in next 6 months

Lone iron block, with deposits of 99.54 mn tonne, was reserved for end user steel plants

Odisha government, after successfully auctioning one iron ore block, plans to put three more iron ore mines under the hammer in next six months.

"I can assure that in next four to six months, two to three (iron ore) blocks will be put up for auction," said Deepak Mohanty, director of mines, Odissa government, at the 4th Minerals & Metals Odisha Conclave - 'Strategies for Sustainable Growth', organised by Indian Chamber of Commerce (ICC).

However, he declined to disclose the locations where the mines have been identified.

Initially the state government had identified 12 mineral blocks- four iron ore mines, six lime stone deposits, one manganese mine and a bauxite block for auction. However, out of these, only four mines including Ghorhaburhani-Sagasahi iron ore mines that was auctioned last week, were explored upto G2 level.

The lone iron block, with deposits of 99.54 million tonne, was reserved for end user steel plants. Essar Steel has emerged as the successful bidder for this block.

Stating that the results of the auction were encouraging, RK Sharma, secretary, state steel and mines department said, "The availability of pipeline with Essar to carry iron ore in slurry form might have encouraged the company to aggressively bid for the mine."

Meanwhile, the Centre has turned down the proposal of the state government for allowing it to auction the mines at G3 level exploration stages. The Centre has asked to the state to bring the G3 level mines to G2 level so that it will fetch better returns. The state government proposes to approach the Centre again to allow it to go for auctioning of composite licence (prospecting licence and mining leases) for mines explored upto G3 level.

Mohanty said that the state government is in the process of finalising a road map for auctioning of mines in 2020 after the lease validity of the merchant miners expires then as per the new Mines and Minerals (Development and Regulation) act.

The state government has collected more than Rs 100 crore from miners from different districts under District Mineral Foundation rules.

"Most of the funds have come mainly from districts like Keonjhar, Jajpur, Angul and Sundergarh", said Sharma.

Vishal Aggarwal, chairman, ICC-Odisha chapter pleaded for financial package to ensure profitability and sustainable growth of the steel and metal industries as the world steel market is going through a slow down.

The ICC also demanded time bound auction of iron ore mines, increase iron ore production to the rated capacity of the merchant mines, reintroduction of export duty on chrome ore and low grade iron ore and removal of clean energy cess and import duty on coking coal.

Manish Kharbandha, member, ICC and executive director, Jindal Steel and Power Limited (JSPL) said, "One lease holder should not be given more leases which leads to cartelisation."

He was reacting to the rule of MMDR act where the Centre is empowered to relax the lease area limit of 10 sq km for the bidder participating in the auction process.