Business Standard

Face-off with locals hits iron ore supply from Gandhamardana

About eight bidders are yet to lift iron ore fines from the mine

Sadananda Mohapatra Bhubaneswar
The face-off between Odisha Mining Corporation (OMC) and residents of Gandhamardana mines area over engagement of locals in mineral loading, which started on Tuesday, is yet to subside as the district administration is still searching for an amicable solution.

As a result, about eight bidders, who had bid for iron ore from Gandhamardana area for July-September period and other interested buyers, are not able to lift the iron ore fines stacked in the area.

“We are discussing with locals as well as company officials. I cannot talk about definite time period (about when the normalcy will be restored),” said Bishnu Sahoo, collector of Keonjhar.

The locals have been demanding work order for loading of minerals from mines pit-head to trucks. They have opposed the decision of OMC to engage a contractor, who will carry on the work with equipment instead of manual labourers.    

“The engagement of a contractor with equipment was essential for smooth and steady operation of the mines. However, we are still ready to absorb the 400 odd locals who were previously working as manual labourers,” said Saswat Mishra, chairman-cum-managing director of OMC.

Ore transportation from the area has been halted since March 22 due to the stiff resistance of locals and court orders. Earlier this month, the district administration and police authorities decided to operate the carriers on August 27. But the attempt was thwarted with the locals vehemently resisting it with the backing of political leaders.

The site has about four million tonne of iron ore fines in stock. In the current quarter, the company had earmarked about 300,000 tonne high grade fines for sale, but could not do so due to opposition.

The agitation leaders could not be reached for comments. But sources said, they are at loggerheads with the OMC authorities for fulfilment of their demands such as priority in employment and iron ore transportation. They allege that OMC had assured to provide employment to local youths and engage local transporters during the public hearing held for the mine expansion. But the conflict triggered after OMC invited open bid for loading of iron ore.

OMC said, since the local agency, which was loading through machines, did not take part in the tender process, it has no right to demand for the right of work order.

Insiders said, OMC administration was unhappy that some miscreants of local agency were collecting Rs 500 per truck illegally and that’s why the company decided to invite an open tender.

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First Published: Aug 30 2013 | 8:13 PM IST

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