 "Pellet makers seek despatch of stacked iron ore fines")
It may be noted that 18 iron ore and manganese mines in the state are currently under temporary suspension as per an order of the Supreme Court.
Pellet Manufacturers Association of India (PMAI) have submitted a memorandum to Union minister for steel & mines Narendra Singh Tomar who visited Odisha today. “Due to May 16 order of the Supreme Court, around 18 merchant mines are stopped for supply of iron ore fines into the market. This has resulted in big crisis for iron ore availability to the pelletisation plants. However, around 36.57 million tonne, ready to despatch iron ore fines are available in these 18 and other merchant mines of Odisha. We request you to allow for despatch of these fines for the consumption of downstream pelletisation and steel industry. This will give a temporary relief for the investors as most of the plants are operating below 20 per cent capacity utilisation and some of them have already closed”, N D Rao, president, PMAI wrote in the memorandum to the Union minister. In the memorandum, Rao mentioned that several pellet makers have invested Rs 35,000 crore on pellet plants with an installed capacity of 65 million tonne. Of this, 40 million tonne capacity is held by merchant players and the rest 25 million tonne is meant for captive consumption.
Many of these pellet makers also have iron ore beneficiation plants for utilising low grade iron ore dumps available in various mines. Pointing out that 120 million tonne of low grade dumps are available within Odisha itself, PMAI has urged the minister to make the stock available for pellet makers that are starving of raw material. Due to non-availability of raw material, many pellet plants were on the verge of turning into Non-Performing Assets (NPAs).