India: Rungta’s Jajang Iron Ore Mines Capacity ramp up to 16.5 MnT

Rungta Mines has been granted clearance for production enhancement by the Union Ministry of Environment & Forest at its Jajang Iron ore mines in the Joda mining circle. Environmental Clearance (EC) has been extended from 5.5 MnT to 16.5 MnT, according to notification issued by the Central government in the month of March.

Earlier, the miner had permission to enhance Iron ore production at the Oraghat mines to 5 MnT from the existing 1.94 MnT. The miner would also increase the production at its Sanindpur mines to 4.5 MnT from 1.65 MnT.

In December, the Odisha government had requested the Central government to clear the mining output enhancement applications, which have been kept in abeyance by the Ministry of Environment & Forest (MoEF) since Apr’14. The approval of these applications is crucial as the state government is trying to boost its mining revenue, which has fallen due to closure of major mines.

Another leading miner, Serauddin has also been granted to increase production at its Balda mines from 4.5 MnT to 15.15 MnT. According to sources, the permission was granted to the two miners in the 3^rd week of December.

Mines having Permission for Production Expansion

Quantity in MnT pa
Source: Steel & Mines Dept, Government of Odisha

Iron Ore Capping still at 57 MnT

The Odisha government is to set up a sub-committee within the state level task force on steel & mines to recommend production limit for Iron ore in 16 mines from Joda and Koira, Iron ore producing sectors in the state.

The state government had fixed the cap on production of Iron ore at 57 MnT in FY15 for merchant mining. While, the cap was 13 MnT in Koira sector and 44 MnT in Joda sector.

The Shah Commission had recommended capping Iron ore production between 50 and 55 MnT pa. The production can be increased at 7.5% a year or equivalent to the growth of Steel and Sponge iron industries subsequently, it said.

“Odisha’s Iron ore production will not increase more than 57 MnT untill & unless the state government make some changes to cap on Iron ore production,” said a miner based in Odisha.

Iron Ore Production in Odisha falls by over 36% in FY15

Odisha, India’s top Iron ore producing state, has witnessed a fall of over 36% in Iron ore production during FY15, according to a provisional data recorded at Odisha Mining Department. Odisha’s Iron ore production in FY15 stood at about 46-47 MnT against 74 MnT in FY14.

Rungta Mines remained the largest producer, followed by Tata Steel and Serajuddin Mines. The Supreme Court last year (16 May’14) had passed an order to shutdown the mines, which were operating on 2^nd deemed renewal. Net 18 Iron ore & Manganese mines were closed, resulting a production loss of over 20 MnT.

State officials have sought renewing 18 mines under MMDR act, which gives a provision of lease extension till Mar’20 for merchant miners and Mar’30 for captive miners.

For official notification, click here