The incident took place when the labourers attempted to stop use of machine to crush iron ore at the mining site, about 105 kilometer from here in Mayurbhanj district, this morning, police said.
The labourers alleged that they were not getting jobs regularly as the company deployed machines for crushing iron ore stones.
The situation turned violent when police intervened as angry labourers pelted stones at the police force who resorted to blank fire to disperse them.
"The situation is under control. Armed force have been deployed in the area to avoid any untowards incident in future," said sub-divisional police officer (SDPO) Santosh Das.
The injured labourers were rushed to the hospital at Badaompahad while seriously injured ones admitted to the district headquarters hospital here, police said.