Iron ore mining tragedy in Odisha

Iron ore mining tragedy in Odisha occurred when the Supreme Court ordered to stop mining operations of 26 Iron ore and Manganese ore mines running under 2nd deemed renewal.

Soon after lifting of Iron ore mining ban in Goa on 21 Apr, 2014 which had conditional 20 MnT pa cap, India’s Supreme Court issued an interim order for suspension of 26 Iron ore and Manganese ore mines on 16 May, 2014. The suspension order also includes 7 captive mines of TISCO and SAIL in Odisha. Iron ore mines include 10 merchant and 7 captive. Interestingly, ban has no connection with Shah Commission report rather; the reason is failure of licenses renewal of those mines, which were operating under 2nd deemed renewal. Iron ore crisis has now slapped Odisha, after hitting Karnataka & Goa. These mines were seeking second and subsequent renewals and working under automatic lease renewal clause. The court maintains that automatic renewal of leases after first renewal is illegal.

The Apex Court had given 6 months time to Odisha government for renewing of licenses and captive mines namely TISCO and SAIL are on the priority list. The 10 merchant mines produced 19.1 MnT Iron ore in FY14 and it will be fatal for Indian Steel industry, as Karnataka Iron ore mining situation is improving slowly and Goa is yet to restart its operations.

Supreme Court orders suspension of 26 Iron Ore & Manganese Ore Mines in Odisha

Iron Ore Mines

14. TISCO Garuda

1. TISCO Joda East

15. OMC : Kurmitar Pahar

2. TISCO Khandabandh 

16. SAIL Barsuan (Koira)

3. TISCO Katamati 

17. SAIL : Kalta (Koira)

4. SAIL Bolani

Manganese Ore Mines

5. KJS Ahluwalia Nuagaon 

18. AMTC : Mahulsukha (Koira)

6. MESCO  (Mid East Integrated Steel)

19. TISCO Manmore

7. K.N.Ram & Co.

20. TISCO Joda West

8. Kalinga Mining Corporation: Jurudi

21. TISCO Bamebari 

9. Kaypee Enterprises

22. OMM Bhanjikusun (Koira)

10. AMTC : Narayanpasi (Koira)

23. OMM Patmunda (Koira)

11. BICO Nadidihi (Koira)

24. OMM Orahuri (Koira)

12. BICO Tehrai (Koira)

25. Rungta Mines Kanthar (Koira)

13. Feegrade Nadikasira (Koira)

26. Rungta Mines Kolmong (Koira)

Source: Steel 360 Research

Survival of Sponge Iron Industry at Stake

After continuous hits, Sponge iron industry has to again struggle for raw material procurement. Already fighting with Lumps shortage and expensive raw material, Pellets availability has also dropped. Miners and Pellet producers with low stock situation are offering expensive material. To add on, Supreme Court hasn’t yet allowed miners to liquidate the material mined before the suspension.

Odisha is India’s leading Iron ore mining state with production of 72 MnT in FY14; India produced 142 MnT Iron ore. Rungta Mines is the largest mining company at 12 MnT output last fiscal.