State-controlled Odisha Mining Corporation (OMC), a key operator in iron and chromite ore mining, has said that it is not in a hurry to raise money from the capital market as it is sitting on huge cash reserves and would rather focus on improving production.
"Getting listed is not on our cards... anyways, we are not keen on getting listed as we have enough money to fund our expansion plans. We would rather like to ramp up our production,” said Saswat Mishra, chairman-cum-managing director of OMC.
In August 2011, the government of Odisha had announced to list its profit-making public undertakings such as OMC and Orissa Hydro Power Corporation (OHPC) on stock exchanges. But even after a year nothing has moved so far.
"The Public Enterprise department was doing something about it (the process of getting listed) , but we have not heard from them almost for a year,” said Mishra.
OMC currently holds leases for 11 iron ore mines, with production potential assessed at 30 million tonne per annum (MTPA). But due to clearances and other problems, the miner is producing only three to four MTPA .
"We have so much problem in ramping up production due to logistic problems, clearances and other issues that it will make difficult for us to explain to our shareholders once we get listed. Perhaps we are not yet ready to get listed,” he said.
The profit-making entity had a net profit of Rs 1,287.50 crore in 2011-12, out of its Rs 2,141.38 crore revenue during the year, as per provisional figures available at the corporation's website. It is currently sitting with a cash reserve of nearly Rs 4,500 crore and has plans to spend around Rs 1,400 crore in modernisation of mining technologies at its key mines.
However, the miner needs to wait for some time as the two large iron ore mines―Daitari and Gandhamardana―are yet to get forest and other clearances for upgradation of output. The Odisha chief secretary has last week instructed government departments to expedite clearance process in next six months.
