Notices issued to mine owners to ramp up output, sale

Amidst dip in collection of mining revenue due to closure of some key mines in the state, the Odisha government has mounted pressure on the functional mines to step up production and despatch of minerals from their deposits.

The state has sent show cause missives to these mines asking why they will not be issued 60-day notice for cancellation of their mining leases under section of 27 (5) of the Mineral Concession Rule, 1960, if they fail to meet the production and despatch target for which they have got the environment clearance (EC) and asked the mine owners to respond to the notice in seven days. It may be noted, the state mines department had convened a meeting of mine owners and end-use industries, which have been allocated resources for their consumption, in the first week of this month, where it expressed concern over falling production and despatches of minerals in the state and its consequent impact on economy and revenue collection.

The state government had instructed the deputy director of mines (DDMs) of Joda and Koira circles to ensure that all allotted quantities are lifted by March 31, 2015. The DDMs/mining officers (MOs) of the respective circles are to intimate the allocated amount to the concerned lessee and the allotted industry. It may be noted that Joda, one of the key iron ore producing circles has an iron ore despatch shortfall of 3.49 million tonne in the non-captive mines in January 2015. The iron ore despatch limit for January has been fixed at 4.53 million tonne for January of which only 1.03 million tonne was despatched. Production from non-captive iron ore mines in the Joda circle is projected at nearly 20 million tonne in this fiscal while despatch limit has been capped at 24.69 million tonne.

Substantial quantities of iron ore are yet to be lifted from captive mines like Unchabali iron ore mines, Balda block iron ore mines Jajang iron ore mines, Roida-C iron ore mines and Dapahar iron ore mines to name a few. Recently, state run miner Odisha Mining Corporation (OMC) agreed to supply 2.5 million tonne of iron ore to the state based steel units for the January-March quarter of this fiscal as per the 50:50 resolution of the state government announced in December 2012.