OMC iron ore production falls by 50% in last 5 years

While the steel makers in the state are facing raw material
crisis, the dwindling iron ore production of Odisha Mining Corporation (OMC), a state owned miner, has made the situation worst. The iron ore production of the Odisha government
controlled miner has come down by 50% in the last 5 years.

OMC,
which was producing 7.84 million ton per annum (MTPA) of iron ore in 2008-09,
it came down to 7.43 MTPA in 2009-10. The sliding continued in 2010-11,
when OMC registered production figure at 5.34 MTPA and it went down to 4.27
MTPA in 2011-12 and it has hit the lowest 3 MTPA in 2012-13. While OMC
production level has dwindled, it has directly hit both local and neighbouring
steel industries, which are heavily depending on Odisha ore. Requirement
of iron ore for these industries is around 20 MTPA and in fact OMC is in a
position to produce 25 MTPA, feel insiders. According to latest plan, OMC has
targeted to produce 25 MTPA iron ore in 2018-19. Recently the steel makers
in Odisha have submitted a proposal to the State Government that 70 percent of
iron ore production of the state be set aside for them. While production
of iron ore has dwindled, chrome ore production has also received set
back. During 2008-09 chrome ore production was 9.86 lakh ton per annum
(LTPA), which came down to 5.42 LTPA in 2009-10. And in 2012-13 it has hit
lowest ebb with 3 LTPA. So raw materials produced by OMC, which is needed
for the steel sector is falling fast and driving the home-grown steel makers to
dire straits, rued a senior Vice President of  a Steel Major. 

Recently
to ease the raw material supply hurdle, Chief Minister Naveen Patnaik  has
formed an Inter Ministerial Group (IMG) headed by Prasanna Achrya, Minister of Finance. The
IMG will be meeting on 26 November with two other members like Niranjan Pujari,
Minister Industries and Rajani Kanta Singh, Minister Steel & Mines. Ã¢â‚¬Å“But
when the production level of OMC is falling continuously, how can the IMG will
be able to save the situation”, pointed out an expert.

Edited by Tapan Moharana