Orissa government’s recent notification (dated 05.12.12) on channelising sale of iron ore to the standalone mineral based industries of the state, asking miners to sell at least 50% of its output (both lumps and fines individually) within the state at prevailing market prices until further orders.
In response to it, few miners have started looking for long term supply contracts with state based industries, confirmed market sources. Also big plants like KIOCL and RINL have shown interest in setting up plants in Odisha, on condition that they shall get secured supply of iron ore.
Although market participants do not see it will impact supply of iron ore to other states in large, but it will certainly give some relaxation to steel plants based in Odisha.
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