The State Government has decided to allow disposal
of the stock of raised ore up to 2 October, 2012.This decision of the
government has come in the wake of demand for raw materials by the industrial
units set up in the State.
The All odisha Steel federation representing 200 odd
steel and sponge iron makers has been demanding for liquidation of the iron ore
stock. “There is 100 million tonne of iron ore stacked up at different mine
leases in the state. Even the Shah Commission of enquiry has drawn the
attention of the government and mine owners on this matter. Then why not
liquidate this excess stock? Where is the need to create an artificial crisis
of iron ore at a time when local industries are suffering?†AOSF president P L
Kandoi had said couple of months back.
Millions of tons of iron ore were stockpiled at
different places with the change of Policy Guidelines on Second or Subsequent
Renewal of Mining Leases with effect from 3 October, 2012. Issuing an order in this
regard, the Department of Steel & Mines (DoSM) has stated that the stand
alone mines, which awaited second and subsequent renewal but operated under the
deemed extension will be allowed to release the stocks raised before 3
October,2012.
Rajesh Verma, Principal Secretary Steel & Mines
in his order has directed the Director of Mines to instruct the Deputy Director
Mines and Mining Officers to verify the accounts and records to arrive at the
actual quantity of the stock of ore held as on 2 October, 2012.
These mines will dispose of the stockpiled iron ore
subject to fulfilment of the condition that at least 50 per cent of such stock
of iron ore lumps and fines shall be sold to the stand alone mineral based
industries located in the state, limited to the requirement of such user
industries, in an equitable manner, on payment of the prevailing fair market
price by the user industries to the mining lessees. The State Government has
said that such disposal shall be completed within a period of six months. However,
making it clear, the Department of Steel & Mines has stated that the
quantity of ore raised on or after 3 October, 2012 by such stand alone mines
should not be disposed of.
Meanwhile, some experts feel that disposal of
millions of tonnes iron ore would have an adverse impact on prices of iron ore
which may come down significantly.
Reported by Tapan Moharana
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