Shyam Metalics hit hard by stoppage of iron ore supplies

Kolkata based Shyam Metalics, which runs a 0.27 million tonne per annum steel plant at Rengali in Sambalpur district, is staring at closure due to abrupt stoppage in supply of iron ore to the plant.

With barely 6-7 days of iron ore stock left, the company is running only two shifts instead of the regular three shifts and is on the verge of shutting down its operations and laying off its employees.

"The entire requirement of iron ore for our steel plant is met by the supply from the Joda mining circle in Keonjhar district. However, the supply of iron ore to our plant has been stopped arbitrarily from January 14 by the Deputy Director (mines) of the circle. Not just Shyam Metalics, a total of 42 end users, most of them being in West Bengal, have been hit hard due to the abrupt halt in supply of raw material”, a senior company official told Business Standard.

"The company has taken up the issue with the state chief secretary as well as steel & mines secretary and they have assured to look into the matter”, he added.

When contacted by Business Standard, a top official of the state steel & mines department said, "There is a court case pending against Shyam Metalics but we have to ensure that raw material supply to the steel units in the state is not disrupted. We have asked the Deputy Director (mines) of the Joda circle to look into the matter."

Shyam Metalics has already invested Rs 1000 crore on its steel plant which employees 5000 people directly and indirectly.