- Iron ore despatches down 10 mnt from year-ago period
- 3 major iron ore blocks may come up for auction in December
- Govt looking to bring non-functioning blocks into auction
Iron ore production in Odisha will be impacted in the ongoing fiscal due to the government’s imposition of export duty on iron ore and pellets, Dr. U.C. Jena, Additional Director of Mines, Directorate of Mines, Government of Odisha, said at the 5th Indian Iron Ore & Pellet Summit and India Coal Outlook Conference held in New Delhi recently.
“The recent hike in iron ore export tariff has brought down the possibility of mineral dispatches from Odisha. In Odisha, production of iron ore at this time of last year was over 50 million tonnes (mnt), which has come down by 4 mnt this year,” the accomplished technocrat said.
Despatches of iron ore from Odisha mines at this time in 2021 was around 54 mnt, which has fallen to 44 mnt. This 10 mnt drawback is only due to the clampdown of steep export duty on iron ore, he stated.
“If the 50% export duty on all grades of iron ore remains in place, it is safe to assume that production from Odisha, which was around 140-145 mnt last fiscal, may drop to around 120 mnt in FY’23. The possible loss of iron ore production from Odisha may be around 20 mnt. This is surely a matter of concern,” Jena added.
Odisha auction scenario
Odisha has auctioned 37 mining leases out of which there are 28 iron ore and manganese blocks. Around 23 mines are in operation currently. Odisha was the first state to auction mining leases in 2016.
Odisha is going to auction 12 more mineral blocks this year for major minerals and 19-odd for minor minerals. The Odisha government has roped in MSTC for the auctions and is it hoped that the state’s overall mineral production will increase this year.
Nevertheless, the Odisha government is proposing for further auctions of mineral blocks.
“The state has engaged three-four agencies, the head of Geology Dept., OMECL, the central government’s MECL and GSI for extensive prospecting. Among unexplored iron ore mines in the state, three major bocks, including Khandadhar, have been allotted for prospecting license,” Jena informed.
The state government expects that from 23 December, 2022 the blocks would be ready for auction. “That is the targeted time. It is expected that these blocks will garner significant interest in the forthcoming auctions. Many big companies are already coming to Odisha and many more will be willing to win the blocks that are coming up for auctions,” he said.
Non-operational blocks
The state government has also decided to take over non-operational leases that were allotted previously. As per estimates, there are around 380 such leases that are currently not operating. The State Geology Department has been engaged by the state government to explore these blocks. If there is any potential left in these blocks, these would also be made available for auctions.
“The Odisha government is engaging with present mineral blocks as well as blocks that are lying abandoned from the earlier lessees,” said Jena adding that the state’s mineral production outlook remains bright as ever.
~ By Nirmalya Deb
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