OMC not to supply ore to new projects in Orissa

At a time when the demand for iron ore and chrome ore in Orissa is growing significantly due to the rush of investment proposals in the steel and mines sector, the state government owned Orissa Mining Corporation (OMC) has categorically stated that it would not be able to supply these two ores to any new MoU (Memorandum of Understanding) signed player in the near future.

OMC is currently producing around 7.5 million tonnes of iron ore and close to 10 million tonnes of chrome ore per annum.

The corporation is currently supplying iron ore to 21 MoU signed companies and 21 sponge iron units that have not entered into MoUs with the state government.

Similarly, OMC is supplying chrome ore to one MoU signed company and 45 non-MoU signed units both within and outside the state.

At the current level of ore production, OMC is unable to meet the total ore requirement of its existing customers as a result of which some MoU signed industries of the state other than the existing customers are not getting ore supplies from OMC.

"Given our level of ore production, we cannot supply iron ore and chrome ore to any new MoU signed unit of the state in the near future. The state government needs to keep this fact in mind while signing MoUs for setting up iron ore and chrome ore based industries in the state,” said a top official of OMC.

It may be noted that as many as 50 companies in the steel sector had signed MoUs with the state government. OMC has a reserve of 400 million tonnes of iron ore, 19 million tonnes of manganese ore, 28 million tonnes of chromite, 220 million tonnes of bauxite and 19 million tonnes of limestone.

It operates 11 iron ore mines, five chrome ore mines, three manganese ore mines and one limestone ore mine.