In a major development, Supreme Court of India has granted ‘consent to operate’ to Odisha’s RP Sao Mines. Owing to delay in penalty payment amount over illegal mining case in the state, miner’s operations were suspended. But with payment of compensation amount along with interest amount, the miner has received consent from the Apex Court.
The iron ore miner has EC limit of around 5.7 MnT pa and is situated in Guali, Joda. The miner was last seeing offering material in the merchant market towards the end of 2015.
What does the order mean ?
The consent granted by Supreme Court to the miner has brought optimistic news in the market as this will enhance state’s iron ore availability.
However it may take few weeks time for the miner to quote offers in the market, mentioned market sources.
Will prices come under pressure ?
Iron ore prices in Odisha have come under pressure over improved supply with few major mines resuming operations after payment of penalty amounts. Few miners including Rungta Mines have recently slashed iron ore prices.
Earlier, Odisha iron ore merchant miners had raised prices since Dec’17 expecting supply disruption in near future. Miners had raised iron ore prices upto INR 800/MT in Dec’17 and further by INR 500/MT in Jan’18.
With further increase in iron ore supply in the state, prices are likely to come under pressure.
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