On 8 Apr’16, Odisha High Court ordered Jindal Steel & Power to lift its iron ore stocks lying at Sarda mines but the steel maker is yet to receive the transit permit for the same.
Mr. Manish Kharbandha, ED at JSPL in conversation with SteelMint shared that “We have applied for approvals at Deputy Director of Mines, Joda but we are yet to receive the transit permit for lifting stocks from Sarda mines.”
Owing to lack of necessary clearances, Sarda mines had been closed since Apr’14. JSPL’s Tensa Mines is operational which has capacity of 2-2.5 MnT pa, is not enough run their 9 MnT pellet plant in Barbil (Odisha). Since mining operations were suspended at Sarda Mines, JSPL was facing shortage of iron ore because of which it was dependent on Odisha merchant miners like Kaypee Enterprises, Serajuddin Mines and Rungta Mines.
It is estimated that Sarda Mines has inventory that amounts to more than 10-11 MnT which majorly comprises of fines. Hence once the steel giant starts lifting its stock from Sarda Mines it will have huge pressure on Odisha iron ore fines prices.
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