OMC to conduct chrome ore e-auction on Oct 31

Auction date was postponed due to labour strike at mines

The state-owned miner Odisha Mining Corporation (OMC) plans to conduct chrome ore e-auction on October 31 as its biggest mine at South Kaliapani in Jajpur district resumed production and transportation after weeks of labour unrest.

Though the labour problem is yet to be resolved fully, OMC has decided to go ahead with the auction plan as the district administration has provided police protection for production and despatch of material at the mines, sources said.

“The production and transportation of previously auctioned chrome ore is being carried out with the help of police security. The agitating workers are not permitted to enter into the site,” said an official of OMC.

The district administration declared the labour strike as illegal on October 19, three weeks after the labourers halted mining activities. The mine workers have been protesting since August 5 this year demanding better pay and regularisation of jobs, which has affected chrome ore production.

They intensified the stir from October 1 by blocking truck transportation and halting mining activities when the management did not heed to their demand. They had even shut down the local office of OMC. “The labour strike did affect production at the site. But we will go ahead with e-auction of chrome ore,” the sources said.

OMC planned to auction nearly 100,000 tonne chrome ore on October 20, but had to postpone the date amid labour unrest. In October 31 auction, OMC would offer nearly 60,000 tonne chrome ore for sales. OMC auctioned 61,000 tonne chrome ore and concentrate on September 11, less than 90,000-100,000 tonne quantity offered in previous auctions. The resource company conducts e-auction every 45 days, where buyers from domestic and industries from outside state participate.

As per the current practice, it had time till October 26 to conduct e-auction since last auction was held on September 11, but had to defer the dates as the workers blocked excavation at the site. OMC currently operates two chromite mines — South Kaliapani and Sukrangi —coming under Jajpur Road mining circle. South Kaliapani has the potential to produce 150,000 tonne of chrome ore per month in peak season while Sukrangi produces about 10,000 tonne ore every month. Chrome ore is primarily used in stainless steel industries, apart from refractories.

Many local units such as Jindal Stainless Limited, Rohit Ferro Tech depend on OMC supplies to run their ferrochrome units. Nearly all of India’s chrome ore is found in Odisha with OMC having control over one-third of production. Few players such as Tata Steel, Indian Metal and Ferro alloys, Facor and Balasore Alloys have their captive mines in the state.