Five mines in Joda may have to stop production under new govt order

The Joda mining circle has sent notices to 10 mines under its jurisdiction to restrict their productions as per their captive needs until the renewal of their mining leases.

The order, issued in line with a recent resolution of the government, is likely affect productions of five mines which do not have any user industry to consume the mineral.

The iron ore mines which might face closure of production because of not having any mineral development industry attached to them are Bhanja Minerals, R P Sao, Essel Mining, Kalinga Mining Corporation and Kaypee Enterprise. These mines are large exporter of iron ore fines and also sell the raw material to domestic steel units.

Out of the 10 miners which have been served notices, all of them have iron ore mines. While three of them have dolomite deposits along with iron ore, one has manganese mixed with iron ore. At present, a total of 31 mines are operating under Joda mining circle, the biggest one in Odisha.

KJS Ahluwalia, K N Ram, MISL (Mesco Steel), Tata Steel and Steel Authority of India (SAIL) were part of the 10 miners who use minerals for their plants, but they have to now restrict their output only according to their daily or monthly need till further order.

However, SAIL being a Central government PSU, might be exempted from the order.

On October 3, the state government had brought a resolution saying that henceforth, only mines having any industry attached to it will be given priority at the time of renewal of mining leases.

It has also made it clear that miners cannot claim the mine at the time renewal as their birth right and the government has the power to not recommend the renewal in their favour in order to ensure supply of raw material to other steel units in the state who do not posses any captive mine.