The State Cabinet had favourable news for iron ore buyers from OMC via the long-term linkage (LTL) route. LTL buyers willing to invest in mechanized ore evacuation system would be permitted LTL linkage for period beyond five years. This step is expected to ramp up iron ore production at OMC mines.
For ramping up production at its older mines like Daitari and Gandhamardhan, OMC is banking on enhanced mechanization. The mining PSU is embarking on the MDO (Mine Developer Cum Operator) model for iron ore sector to accelerate output. The MDO currently is in vogue at many coal mines in the country but not tested on a massive scale for iron ore operations. With the envisaged ramp-up in output, OMC expects its overall sales to double to Rs 8000 crore, from around Rs 4000 crore now. Iron sales have kept OMC’s cash registers buzzing. Major steel producers like Jindal Steel & Power (JSPL, Tata Steel, Jindal Stainless Ltd (JSL) and a clutch of other mid-sized and smaller scale steel manufacturers have been sourcing iron ore from OMC either at electronic auctions or via long-term pacts.
Adani Enterprise Ltd has been awarded Mine Developer & Operator (MDO) for Kurmitar iron ore mine owned by OMC Ltd. and has signed contract for the same in Nov’19. Adani Enterprises will take over the place as MDO in Mar 2021 for 6 MnT of iron ore mine (EC Limit). The contract remains intact for 20 years or exhaustion of reserve whichever is later. The present MDO of Kurmitar mines is working for 2.4 MnT and after the period of existing mine operator shall be completed.
OMC is also a key iron ore supplier to steel plants and other end user industries with operations outside of Odisha.
Odisha Mining Corporation (OMC) is state run PSU and is a joint venture between the Govt. of India and the Govt. of Odisha. The miner recorded iron ore production of 10.47 MnT iron ore in FY19.
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