The Rengalberha iron ore deposit has been reserved for state PSU Odisha Mineral Exploration Corporation Ltd. (OMECL) in an order dated Feb 5, the Ministry of Mines approved the state’s recommendation, in OMECL’s favour. According to senior officials of OMECL, the state had signed a lease deed in favour of the PSU.
The greenfield deposit covering an area of 24.230 ha in Keonjhar district is relatively new arm of the state government’s first mine.
In the past, the state had decided and then shied away from giving OMECL the Guali iron ore mine and the Sukinda chrome mine that Tata Steel operated, reserving and then de-reserving these blocks even as OMECL, in anticipation, advertised for mining operators.
The reason then offered was that state PSUs would have to get fresh clearances, existing environmental clearances were being extended for two years only to auctioned mines. A Tata Group company, TS Alloys bagged rights to the Sukinda chrome mine, while Guali (along with Jilling-Langalota) which the state failed to auction successfully, have been given to Odisha Mining Corporation to operate for 10 years.
The Centre’s latest proposed reforms talk about a premium for mines allotted to PSUs outside of auction. In the case of iron ore, the Centre proposes a 22.5 percent revenue share. This however may not apply to OMECL, suggested an official on condition of anonymity
Teherai to NMDC
Teherai, a mere 2.5 mn t iron ore block, auctioned but not leased out, is likely to be reserved in favour of Steel Ministry’s Navaratna company, NMDC. With the Centre banking on public sector enterprises to fix the iron ore crisis – a provision it wants to bring into the MMDR Act now – NMDC is also hoping to bag mining rights to Nadidih and Rangalbeda iron ore deposits, which had been auctioned but have not been leased out yet. Another mine or two will allow the PSU which is keen on a presence in Odisha some economy of scale.
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