Iron ore miners located in Odisha are yet to review prices. The Supreme Court issued an interim order on 16 May’14 which directed suspension of mining operations of 26 mines.
These mines were operating under 2nd (or beyond) deemed renewal and their operation will be on hold until next hearing, likely to be scheduled in Aug’14.
Odisha is the largest Iron ore producing states in India with production of about 72 MnT in FY14 i.e. 51% of country’s total output at around 142 MnT.
Supreme Court orders suspension of 26 Iron Ore & Manganese Ore Mines in Odisha
|
Iron Ore Mines |
|||
|
1 |
AMTC Narayanposi (Koira) |
11 |
SAIL (Bolani) |
|
2 |
BICO Nadidihi (Koira) |
12 |
SAIL Barsuan (Koira) |
|
3 |
BICO Tehrai (Koira) |
13 |
SAIL Kalta (Koira) |
|
4 |
Feegrade Nadikasira (Koira) |
14 |
TISCO (Bamebari) |
|
5 |
Kalinga Mining Corporation (Jurudi) |
15 |
TISCO (Guruda) |
|
6 |
Kaypee Enterprises |
16 |
TISCO (Joda East) |
|
7 |
KJS Ahluwalia (Nuagaon) |
17 |
TISCO (Joda West) |
|
8 |
KN Ram & Co. |
18 |
TISCO (Khandabandh) |
|
9 |
MESCO (Mid East Integrated Steel) |
19 |
TISCO (Manmore) |
|
10 |
OMC Kurmitar (Koira) |
20 |
TISCO (Katamati) |
|
Manganese Ore Mines |
|
|
21 |
AMTC Mahulsukha (Koira) |
|
22 |
OMM Orahuri (Koira) |
|
23 |
OMM Bhanjikusun (Koira) |
|
24 |
OMM Patmunda (Koira) |
|
25 |
Rungta Mines Kolmong (Koira) |
|
26 |
Rungta Mines Kanthar (Koira) |
Supreme Court has set a time of 6 months for Odisha government to sort out pending renewals, considering captive miners (Tata and SAIL) on a priority basis. Thus, Tata and SAIL will not be impacted in a large way.
Uncertainty over Sale of Iron Ore lying at Mines Head
26 miners are yet to receive a confirmation whether they are permitted to clear the stockpile available at mines head. In case, government gives consent, the situation will still be awful since present inventory of below mentioned merchant miners stands at only 7.6 MnT.
SAIL and Tata Iron ore mines in Odisha have a capacity of about 22 MnT pa. 16-17 MnT is the annual output from the below mentioned merchant Iron ore mines.
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Production & Closing Stock of Merchant Iron Ore Mines in FY14 |
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|
Sl No. |
Names of Mines |
Production of FY14 (in MnT) |
Closing Stock of FY14 (in MnT) |
|
1 |
KJS Ahluwalia |
4.8 |
– |
|
2 |
AMTC Narayanposi (Koira) |
2.8 |
0.1 |
|
3 |
Feegrade Nadikasira (Koira) |
2.1 |
0.5 |
|
4 |
MESCO |
2.0 |
0.6 |
|
5 |
KN Ram & Co |
2.0 |
2.0 |
|
6 |
BICO Nadidihi (Koira) |
1.8 |
1.2 |
|
7 |
Kalinga Mining Corporation |
1.5 |
2.7 |
|
8 |
OMC Kurmitar (Koira) |
1.3 |
– |
|
9 |
BICO Tehrai (Koira) |
1.0 |
0.5 |
|
10 |
Kaypee Enterprises |
Negligible Qty |
– |
|
Total |
|
19.1 |
7.6 |
SAIL & TATA mines are not included as they captive
Note: Manganese ore mines are have not been considered; only merchant Iron ore mines whose operations have been suspended by Supreme Court are mentioned
Source: Ministry of Mines, Odisha Government
NMDC likely to lift Domestic Prices in Jun’14
Shortfall of Iron ore from Odisha, will improve demand for NMDC’s Iron ore. The state owned and nation’s largest miner may perhaps lift prices, following an increase in the trade volumes.
Iron Pellet Manufacturers hold Offers
Odisha based Iron Pellet manufacturers are expected to re-open sales or review domestic prices, after the ambiguity of Iron ore Fines availability with miners becomes clear. Till then, almost all of the producers have decided to hold back their offers.
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