State starts process for second phase auction of JSL chrome ore

he state government has directed Odisha Mining Corporation (OMC), the State Director of Mines and Deputy Director of Mines (DDM) of Jajpur Road circle to initiate the process of second phase auctioning of about 6,000 tonne of low grade chrome ore, lying at a Jindal Stainless Ltd (JSL) mine, as part of its action against illegal mining.

“I am directed to communicate the approval for conduct of further auction of balance quantity of 5,987 tonne of low grade chrome ore lying within Kaliapani chromite mines of JSL by OMC following due formalities. The sale proceeds thereon may be credited to Government account,” the steel and mines department said in its latest order.

The state government action follows two year old penalty order sent by DDM Jajpur road to JSL for illegal raising of minerals. After finding gaps between the amount of mines dump or tailings stored at the Kaliapani chromite mines and the book balance, the DDM had asked the company to deposit Rs 6 crore towards cost price and royalty of chrome ore.The DDM held that the balance tailings at the mines came to 236,836.33 tonnes as against the book balance of 246,991 tonnes, causing shortage of 10,155 tonnes.

Accordingly, JSL was liable to pay for the cost price, royalty and other taxes for shortage quantity of 10,155.33 tonnes of tailings and feeding quantity of 6,530 tonnes, as per the provisions present in the Mines and Minerals Development and Regulation (MMDR) Act.The recent government order to sell 5,987 tonne mineral is the balance remained after selling first phase of total 10,155 tonne ore seized at JSL mines. Sources say, this time OMC may mull e-auction route to sell chrome ore, which is a key input for stainless steel making. In international markets, low grade chrome ore is currently quoted at around $220-$230 per tonne for South African origin mineral.JSL has said that Rs 6 crore penalty order is baseless, which has been supported by the Revision Tribunal in the Union ministry of mines.

The revision tribunal has held that the very demand for price recovery under Section 21 (5) of Mines and Minerals (Development & Regulation) MMDR Act-1957 is thoroughly misconceived and devoid of any merita JSL raises chromite from the Kaliapani mines for its Vizag steel plant.