Odisha Mining Corporation (OMC), a state government-controlled entity, has registered a sharp increase of 28.82 percent in its iron ore sales for FY20. The company attributed the marked growth in sales to its long-term sales pacts inked with steel and other end-use industries and collective efforts put in by the sales team. Iron ore sales spiked from 10.34 million tonnes (mt) in 2018-19 to 13.32 mt in 2019-20.
In the last fiscal, OMC’s iron ore production too went up 18.22 percent to 12.39 mt. Innovative methods for scaling up mining operations and minimizing the operational costs contributed to the growth in output.
OMC has five iron and manganese ore mines operating under its leasehold. Gandhamardhan and Daitari constitute its flagship operations. The mining PSU liquidates its iron ore through electronic auctions normally organized every month and also via the long-term linkage agreement.
In terms of bauxite production, OMC mined three million tonnes in FY20, logging year-on-year growth of 11.11 percent. Bauxite sales spiked by 52.66 percent to 2.58 mt. While strong industry demand and economies of scale contributed to the production upsurge, robust sales growth of bauxite was propelled by the successful execution of business growth strategy and demand for a high-quality product.
OMC holds bauxite online auctions twice a year. That apart, it has a long-term bauxite linkage pact with Vedanta wherein 70 percent of the ore extracted from OMC’s Kodingamali lease is supplied to Vedanta Ltd for feeding the latter’s alumina refinery plant at Lanjigarh.
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