Demand non-captive status to Tata chrome mine.
Just two days before a crucial meeting of the high level Odisha government panelin which decision will be taken on giving lease extension to merchant chrome mines, the ferro chrome industry in Odisha has once again demanded the state government to intervene on granting extention to merchant chrome mines till 2020.
Rattan Jindal (Chairman and Managing Director, Jindal Stainless), Vishal Agarwal (Vice Chairman & Managing Director, VISA Steel),J. Ramesh (Executive Vice President – Odisha Unit, Nava Bharat Ventures Limited (NBV)), on Monday met chief secretary, Government of Orissa,Gokul Pati, and discussed on issues related to chrome ore mining and ways to resolve problems being faced by ferro chrome plants in Odisha.
Key Demands of the Industry
(1. Extendchrome ore mining leases (where chrome ore is used for other than captive purpose) upto 31 Mar’20 as per MMDR Amendment Act to increase production and availability of chrome ore/concentrates for ferro chrome plants in Odisha.
For chrome ore mining leases of Tata Steel, Misrilal Mines and B.C. Mohanty, where the mineral is used for other than captive purpose, the Government of Odisha needs to complete formalities for deemed extension upto 31Mar’20 as per MMDR Amendment Act and lessees should produce chrome ore/concentrates at rated capacity to ensure availability of chrome ore/concentrates at economically viable prices for survival of ferro chrome and stainless steel plants in Odisha.
2. OMC should increase production of chrome ore from existing and new mines.
OMC should increase production from existing operating & non operating chrome ore mines and also increase production of chrome concentrates at their Chrome Ore Beneficiation Plants(COBPs).
3. Ensure level playing field by granting chrome ore and manganese ore mines to ferro chrome plants in Odisha through auction.
The ministry of mines should include chrome ore and manganese ore in the list of minerals to be auctioned for ferro chrome and manganese alloy plants, in order to eventually ensure level playing field in the ferro alloy industry.
4.Long Term Agreement for supply of chrome ore/chrome concentrates.
Long Term Agreements for meeting requirement of chrome ore/chrome concentrates from OMC’s South Kaliapani Mines and/or other private lessees to Odisha based ferro chrome plants at viable prices is required most urgently.
5. Rates for transport of chrome ore from mining belt to plants needs to be reduced.
The per tonnekilometer transport rate from Sukinda chrome ore mining belt to plants is abnormally high and this needs to be reduced by breaking the strong nexus between influential local people and transport associations with support of Odishagovernment. The government needs to notify the transport rates quickly. The loading of chrome ore should be mechanized and the loading should be done by the lessee.
6. Allotment of coal blocks in Talcher to OMC through government dispensation.
The ministry of coal should be persuaded to allot more coal blocks in Talcher to OMC (state PSU) under government dispensation for commercial mining by OMC for assured supply to end use sponge iron and captive power plants in Odisha.
The Tata Steel Sukinda Chrome Ore Mining Lease Issue
1. The Government of Odisha order dated 1 Dec’14 (before MMDR Amendment Ordinance) for third renewal of Tata Steel’s Sukinda mining lease was subject to various terms and conditions being met and the mining lease deed being executed within 6 months, ie 31 May’15. However, sincethe renewal has not yet been granted and the mining lease deed has not been executed, the order has lapsed. Also, the MMDR Amendment Bill has become effective since 12 Jan’15.
2. The order dated 1 Dec’14 is in violation of Odisha government’s own policy resolution dated 3 Oct’12. As per the policy resolution, only requirement of existing capacity of the mineral industry (ferro chrome plant) would be considered for lease renewal. Whereas in case of Tata Steel, the Gopalpur Plant requirement was also considered, which is not yet “existing”, and so, the order is against the government’s own stated Policy.
3. As per the MMDR Amendment Act, effective from 12 Jan’15, in cases of second and subsequent renewal of mining leases, “the period of lease where mineral is used for other than captive purpose, shall be extended and be deemed to have been extended upto a period ending on 31 Mar’20”, subject to all terms and conditions of the lease having been complied with. Since in case of chrome ore mining leases of Tata Steel, Misrilal Mines and B.C. Mohanty, 85% to 99% of the mineral has been used for other than captive purpose, hence these mines should be assigned merchant status and their lease period be extended accordingly.
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