Odisha government’s notices have stirred three miners to respond stating they would start production soon.
SteelMint has learned that Serajjudin which retained the 15.5 mnt capacity Balda iron ore mine and Debabrata Behera who bagged the Silijora-Kalimati iron ore and manganese mine have assured the state that they would be starting work soon. Meanwhile, Tata Steel has also informed the government that its Sukinda chrome mine had filled up with water and it would resume work post-monsoon.
The letters follow a video conference that Chief Secretary Asit Tripathy held last week to understand why the firms that had committed steep premiums for mining rights to mines earlier this year hadn’t started operating them. As SteelMint had reported on 2 Sept, these firms had been slapped with notices pointing out that they were legally bound to produce 80 percent of the average production over the past two years.
Only six mines – AM/NS’s Thakurani, the four leases bagged by JSW Steel, and very recently Jaribahal taken by Behera’s Kashvi – have started work. Although, way short of the state’s expectations. The fall in supply is hurting production at ArcelorMittal’s own pellet plant in Paradeep.
Speaking to SteelMint on condition of anonymity, senior managers of two companies said they didn’t expect any significant addition to production immediately. As monsoon recedes volumes would pick up but in the immediate future it is likely to come from JSW Steel and AM/NS ramping up, said one of them.
Miners also told the Chief Secretary that Covid19, logistical issues, and sharing the mine with the previous lessee – who potentially has time till the end of October to remove his material – remain a constraint. Some of them have also sought the Keonjhar Collectors’ intervention in managing traffic congestion at the heart of the mining district.
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