Steel min sees no closure of mines in Odisha

Also rules out the possibility of steel plants facing crisis in iron ore supplies

The Union steel ministry does not foresee any possibility of closure of operating mines in Odisha in the wake of tabling of the Shah Commission’s report on illegal mining contrary to the apprehensions of the mining fraternity.

“I don't think so,” Union Steel Secretary G Mohan Kumar said when asked if some operational mines in Odisha were headed for closure in the wake of the Shah Commission's report. He also ruled out the possibility of steel plants in the state facing a crisis in iron ore supplies.

“That is only a part of the issue. The steel plants faced a crisis in Karnataka but that situation is unlikely to happen in Odisha,” said Kumar, responding to a query on whether steel plants would face raw material scarcity due to the Shah panel report. Kumar agreed that existing and prospective steel projects were grappling with problems of raw material supplies and various regulatory clearances. “The major issue is to ensure stable iron ore linkages for the steel units,” he said.

The probe panel had suggested halt in mining activities around the Baitarani river, citing that it was causing pollution.

The Shah Commission, quoting an order of the Supreme Court, held that mining operations without environment clearance (EC) is illegal and needed to be stopped immediately. In its report, the commission stated 96 mining leases had delayed ECs while 94 were operating without EC.

Referring to illegal mining, the commission's report said out of 192 leases of iron ore and manganese ore, 130 were engaged in ore production without unlawful authority. The probe panel has also detected large-scale violation of environment and forest laws.