In a move to bolster iron ore supplies, PSU miner Odisha Mining Corporation (OMC) has floated an Expression of Interest (EOI) inviting applications from eligible state-based end-use industries for long-term linkages to invest in mechanised evacuation systems for the procurement of iron ore fines from OMC’s Gandhamardan mines. This step may be crucial to overcoming the logistics hurdle in the region.
The deadline for submitting applications through the “Customer Integrated Management Service (CIMS)” on OMC’s website is 15 February, 2024.
A market participant informed: “Currently Odisha is facing logistical constraints in mineral dispatch due to lack of availability of empty rakes amid active iron ore exports from India in CY’23. Only a couple of buyers use slurry pipelines from their private sidings to source the material booked in OMC’s iron ore auction. This proposal from OMC gives modernisation in iron ore supply with a commitment to efficiency, sustainability, and technological advancement in the extraction and transportation processes.”
The incorporation of modern technologies, such as conveyor systems and slurry pipelines, not only enhances operational efficiency but also reduces the environmental impact associated with traditional transportation methods.
Notably, OMC’s Gandhamardan B iron ore mines has an environmental clearance of 9.12 million tons (mnt). In FY’24 (till December), production from the mine reached 4.21 mnt and total output in FY’23 was 7 mnt.