Four OMC mines headed for temporary shutdown

State requests MoEF to extend deadline

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Four mines operated by the Odisha Mining Corporation (OMC), a state government PSU, may have to suspend operations by the end of this month as the deadline to obtain clearance for the entire forest land within the lease area ends on January 31.

The mines include two main chromite leases- South Kaliapani, Sukurangi and two key iron ore mines- Daitari and Gandhamardhan (B). OMC, the only chrome ore trader in the country, auctions nearly 80,000 tonne ore every 45 days for several ferrochrome and stainless steel producers such as Jindal Stainless Steel (JSL).

Similarly, the Daitari iron ore mine, estimated to have about 50 million tonne deposits, produces around two million tonne ore per annum. OMC has plans to raise the production capacity of this mine to three million tonne a year. Gandhamardhan (B) is also a key source of raw material for many sponge iron plants of Odisha and neighbouring West Bengal.

All these four mines, and an already shutdown Kurmitar iron ore mine of OMC do not have the necessary forest clearance as of now and cannot get it done within the January 31 deadline.

In February 2013, the Union ministry of environment and forest (MoEF) had issued a guideline, directing all mine leaseholders to obtain clearance for entire forest land of the mine lease area before January 31, 2015, modifying an earlier provision where partial conversion of forest area as per excavation plan was permissible. As the deadline approached, the state government requested the MoEF to extend the deadline in favour of OMC mines, citing its raw material supply commitments for industries.

"For most of these mines, the forest diversion proposals are at different stages and will take some time. It is expected that by June 30, 2015 approval of the Government of India for diversion of the entire forest area would be obtained by OMC. You are requested to consider relaxing stipulations and allow time to OMC till June 30 for diversion of entire forest land within five mines so that the closed Kurmitar mines can start operation after execution of mining lease and other four mines will continue to operate," said Gokul Chandra Pati, state chief secretary said in a letter to Union forest and environment secretary.

OMC currently holds leases for 11 iron ore mines, with production potential assessed at 30 million tonne per annum (mtpa). But due to lack of statutory clearances and other problems, the miner is producing only three million tonne iron ore and nearly one million tonne chrome ore every year .