India: Odisha Govt proposes increase in Iron Ore Production from running Mines

Bhubaneswar:

Concerned with the growing shortfall of mining revenue the Odisha government has decided to enhance production and overall dispatch of Iron ore.

Accordingly, some of the leading miners including Rungta (3 mines), Serajuddin and S.N.Mohanty could be allowed to increase production limit by additional 16 million tonnes per year. They will also be asked to meet the annual dispatch limit given to them.

This was decided in a meeting held today chaired by the steel and mines secretary G.Srinivas, Director of mines and the deputy Director of mines of all mining circles.

There has been a shortfall of about INR 900 crore of mining revenue by October this year against the target due to closure of several leading Iron ore mines in the state.  So it has decided in the meeting that the working mines will be asked to enhance production and dispatch.

“We have given mine wise dispatch limit for this year to the miners. Accordingly Deputy Director of Mines of all mining circles will be asked to impress the lease holders of the working mines to go for their final dispatch as per the limit given to them ( so that no shortfall would be occurred against the limit) ” said Mr. Deepak Mohanty, Director of mines.

He said that the union ministry of Environment and forest (MoEF) has cleared production enhancement limit of some of the miners in 2013-14. But the decision was kept in abeyance in April this year. We have requested the ministry to immediately release the production enhancement so that production level will be increased and dispatch will also be increased.

Last year (December 2013) Serajuddin Mines was granted an additional EC (Environmental Clearance) 11 million tonnes, which was withdrawn in the month of April 2014.

On the other hand the mines will also be allowed to dispatch the previous year’s stock.  There was about 15 million tons of iron ore stock at several mining heads till March 2014.