Jindal Steel and Power Ltd (JSPL) may have to share the costs of discrepancies found at its long-term iron ore supplier, Sarda Mines Private Ltd (SMPL).
Four-day long raids from 6-9 October resulted last Thursday in a suspension order on all despatches from SMPL’s Thakurani B mine. Speaking to SteelMint on condition of anonymity, officials from Odisha’s department of steel and mines clarified that this also covered ore JSPL had paid for and was moving to its plant after a Supreme Court order.
No for Sarda and no for JSPL
“Our inspection found that this material was not clearly demarcated, and its despatch cannot be allowed until Sarda has replied satisfactorily to the show cause notice,” said a government official.
The state has objected to ore being transported by road when the mine’s EC stipulated it be done through the piped conveyor. The report and show-cause also note a 1mt difference in royalty paid stocks of JSPL’s at the mine site, of 13.5mt, against the 12.2mt allowed by the apex court.
Status of iron ore inventories with JSPL, which Supreme Court allowed to liquidate
JSPL has an explanation for this “disparity”: the additional 1.3mt of rom was always theirs but they had only sought SC’s permission for 12.2mt of fines. It is left with about half having despatched about 6mt of this material. Company officials were also confident that Thursday’s suspension didn’t apply to this stock and their dispatch could resume as soon as Tuesday. “Despatch had only been stopped because it was being done on SMPL’s code on i3MS (the state’s mineral transport portal) and couldn’t be rectified soner because of the festive holidays,” said a senior manager.
However, officials of the Mines Directorate suggest otherwise pointing out that the suspension order was for “ALL” despatch. SMPL which resumed mining in February this year, has stocks of 5.05mt of its own.
Sarda mines iron ore production status, which resumed production in Feb/20 after Supreme Court order
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