Odisha HC Directs Govt to Allow JSPL Lift Sarda Mines Ore Stock In 4 Weeks

Odisha High Court has directed the state government to allow Jindal Steel & Power (JSPL) to lift iron ore stock lying at Sarda mines within 4 weeks. Odisha HC yesterday (13 Jul’16) asked the state government to fast track the procedures.

Earlier 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 permission from the Odisha government for the same.

A company official in conversation with SteelMint shared “We had approached the Odisha HC regarding delays in the matter of allowing liquidating Sarda mines iron ore stocks. Following this, Odisha HC has asked the government to allow us to lift stock within four weeks and look into the delays in the matter”.

Its very unfortunate that delays caused is reflecting state government’s anti people policy. The company which is a major buyer of iron ore and gives employment to about 60,000 people is losing huge sum of money around INR 300 crores every month, he added.

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.

JSPL sourced 2.63 MnT iron ore from merchant market in H1 CY16

As per data maintained with SteelMint, JSPL sourced 2.63 MnT iron ore from merchant miners (primarily Kaypee Enterprises and AMTC) in H1 2016 (i.e. Jan’16-Jun’16). And from its captive mines it procured 1.62 MnT iron ore in the same time span. In total the steel maker sourced 4.25 MnT iron ore in first half of this year.

JSPL’s merchant market iron ore sourcing in H1 CY16

Qty in MT
Provisional data
Source: Odisha govt.