The state-owned Orissa Mining Corporation (OMC) has sought the approval of the Orissa government for formation of an external division for its overseas foray.
This proposal is under the consideration of the state government, Pradeep Amat, steel and mines minister, Orissa government said.
With a view to take advantage of the globalisation process and ensure supply of raw materials required by various upcoming industries in the state, OMC plans to expand its operation overseas.
For the purpose, OMC has submitted a proposal to form OMC Videsh Nigam Limited (OVNL) in line with ONGC Videsh, which will be the external arm of OMC. However, the activities of OVNL initially will be confined to trading in different minerals.
The minister said, the sale of iron ore has been badly hit since October this year due to the global slowdown and fall in the price of the steel in the world market.
As a result, all sponge iron plants in the state have cut their production and 3 have stopped production. Since, similar situation prevails in other states, the demand for iron ore has declined in the domestic market. On the other hand, the export of iron ore to other countries has also been hit.
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He said, OMC sold 29.66 lakh metric tonnes of minerals upto October 2008.This included 24.59 lakh tonne of iron ore in the domestic market, 0.25 lakh tonne in the export market, 4.49 lakh tonne of chrome ore in domestic market and 0.28 lakh tonne chrome concentrate and 0.05 metric tonne manganese ore in the domestic market.
The sale of minerals was 57.33 lakh tonne in 2007-08 and 47.17 lakh tonne in 2006-07, Amat added.