Odisha Mines

The Comptroller and Auditor General of India (CAG) which conducted an audit of six iron-ore mines in Odisha has observed that after the auction of the selected mines, there was an "abrupt and abnormal decline in the grade of iron-ore and its classification", as reported by new lessees. "The decline of grade of iron ore has resulted in a revenue implication of approximately Rs 4,162.77 crore for the financial years 2020-21 and 2021-22 in the form of lesser royalty and premium (post auction)", the CAG said in its report No 6 of the year 2024, which was laid before the Odisha Assembly on Wednesday. Though more than 83 per cent production was reported in the grade of 62-65 per cent Fe (iron) in the pre-auction period, the same came down to approximately 16 per cent in the two years after auction (2020-2022), it said. Similarly, the auditor said, the share of grades 60 per cent Fe and below went up from approximately 11 per cent of total production to more than 60 per cent of total ...

Prime Minister Narendra Modi will on Saturday inaugurate projects worth over Rs 2,000 crore of Coal India arm Mahanadi Coalfields Ltd in Odisha. "Prime Minister will inaugurate pivotal projects of Mahanadi Coalfields Ltd (MCL) in Odisha on February 3," the coal ministry said in a statement. Among these is the Bhubaneswari Phase-I, a First Mile Connectivity (FMC) project in Talcher Coalfields, Angul district, built at a cost of Rs 335 crore. This project aims to reduce rake loading time, curb carbon emission and reduce transportation costs. Another important project which would be inaugurated is the Lajkura Rapid Loading System, constructed at an investment of about Rs 375 crore. This system is also designed to enhance coal quality and supply and reduce green house gas emission as well as transportation cost. "These endeavours not only significantly alleviate environmental impact but also create valuable employment opportunities for the local youth," the coal ministry said. Modi

Odisha Chief Secretary P K Jena on Wednesday said that the state has earned Rs 50,000 crore revenue from the mining sector in the financial year 2021-22. Addressing the 77th annual technical meeting of Indian Institute of Metals and National Metallurgist Award ceremony here, Jena said the mining sector has changed the financial situation of the state as revenue from the industrial activity increased ten-fold from just Rs 4,900 crore in the 2016-17 fiscal. "Revenue from the mining sector was about Rs 4,900 crore in 2016-17. In 2021-22, it grew to almost Rs 50,000 crore. This is an almost ten-fold increase in five years," Jena said, while highlighting the contribution of the mining sector to the state's economy. He said Odisha recognises the importance of metals and metallurgical infrastructure and is committed to supporting the sector. "Be it the development of new technology or collaboration with research and scientific institutions, we are here to support you," he told the ...

Union Steel Minister Ram Chandra Prasad Singh will chair the 'Conference with Mines and Industry Ministers' of the country's mineral-rich states at Konark, Odisha

Timing of auctions critical, premiums unlikely to match merchant mines

Lately, the state steel & mines department has issued vesting orders to all successful bidders, save one block won by Goa-based merchant miner Fomento Resources

None of the merchant mines in Odisha whose lease validity expired by March 31 has been able to restart. Though the successful bidders have got LoI, they awaiting formal vesting orders

Although the govt extended the validity of all statutory permits by 2 years for smooth transition, the lockdown is bound to delay the resumption of these mines

Recently, Odisha successfully conducted electronic auctions of 19 lapsing iron and manganese ore blocks now run by merchant or non-captive iron ore blocks

The Jajang iron ore block holds estimated reserves of 39 million tonne

All top steel makers, secondary steel players, sponge iron producers, pellet manufacturers and merchant miners from Goa and Odisha are vying for the blocks on offer

The public sector undertaking has already deposited Rs 134.36 crore to Odisha Compensatory Afforestation Fund Management and Planning Authority (CAMPA) account.

Industry says transition from existing to new lessee is not going to be as easy as anticipated

Out of the 68 mineral blocks auctioned across India till August 6, only five were up for bidding in Odisha: three iron ore and rest limestone and manganese.

The state boasts of the country's largest iron ore output. In the last fiscal year, Odisha churned out 114 mt, contributing more than a half to the nationwide production of 207 mt

The lease validity of these iron and manganese ore blocks notified for auctions is expiring by March 31, 2020

The Union mines ministry after due scrutiny has heeded the state government's call to hike the ceiling on lease area for iron ore and associated minerals to 58 square kilometres (sq km)

Most of the pellet makers in the state are running their units without captive iron ore resource and hence, depend on merchant supplies of ore

Mid-East Integrated Steels, B K Mohanty, Arjun Ladha, Ferro Alloys Corporation (FACOR), B C Deb and S N Das Mohapatra are among the 24 miners.

This is despite the indication by another big supplier government-owned NMDC to not slash ore prices in April