India: Odisha intensifies enforcement against iron ore grade manipulation, tightens dispatch compliance

• Odisha targets dispatch irregularities
• Stricter monitoring across key mines

The Odisha Directorate of Mines & Geology (DoMG) has stepped up enforcement measures to curb illegal mining and irregularities in mineral dispatches, with a particular focus on grade manipulation. The move comes amid concerns that practices such as dilution, blending, misclassification and mis-declaration of iron ore grades have resulted in lower royalty collections and reduced auction premium realisation for the state.

According to a notice issued on 6 July 2026, the department has directed District Deputy Directors of Mines (DDMs) and Deputy Directors of Commercial Assessment (DDCAs) to explain lapses in ensuring the correct grade of ore dispatched from mining leases. Officials have been asked to submit their explanations within three days, failing which departmental action may be initiated.

The action follows inspections conducted by the State Level Enforcement Squad (SLES), which reportedly found several mining leases consistently dispatching ore at grades lower than those approved under their mining plans. The department noted that such discrepancies indicate inadequate monitoring of production, stock and dispatches by field authorities and could lead to significant revenue losses for the state.

An annexure to the notice lists more than 60 mining leases across major iron ore-producing regions, including Joda, Koira, Keonjhar, Jajpur Road and Baripada, where deviations between approved and dispatched grades were observed during Q1 FY’27. The list includes leases operated by major miners such as OMC, Tata Steel, JSW Steel, ArcelorMittal Nippon Steel India, SAIL, Jindal Steel & Power and Rungta Mines, among others.

The directive signals a stricter regulatory approach by the Odisha government towards mineral grade compliance and dispatch monitoring. Increased surveillance and enforcement could prompt miners to strengthen quality control and grade declaration practices, while the market may closely watch for any operational or dispatch-related impact arising from the intensified scrutiny.