Pressure to ease on iron ore prices; mining firms to resume operations

Sequel to SC allowing firms with capacity of 25 mt in Odisha to restore operations

The Supreme Court order allowing some large iron ore mines in Odisha to restart is likely to soothe iron ore prices.

These mines had been ordered closed for defaulting in payment of compensation for overproduction. As a result, ore prices had risen sharply in recent months. Seven mines had shut down, some large, since the beginning of this year. Ore prices have risen about 60 per cent between October 2017 and now, worrying user industries, mostly steel plants.

The closure, if not reversed, had been expected to knock off at least a fifth of the 102 million tonnes produced in Odisha during