India: Odisha Iron Ore Dispatches Picked Up 21% in FY20
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Odisha- India's largest iron ore producing state recorded total merchant iron ore dispatches at 89.08 MnT in FY'20, up 21% as against 73.39 MnT in FY'19. The dispatches moved up on increased procurement from pellet, sponge and steel mills. The figures exclude movement for export and dispatches of miners- SAIL & Tata Steel.
As per market sources report to SteelMint, Odisha iron ore bookings had minimized towards last two months amid concerns over material delivery by 31st Mar 2020. Also, Few major miners had already finished their EC limit, rendering limited production.
Rungta Mines, India's largest private merchant miner, recorded iron ore dispatches at 23.34 MnT in FY'20, up 21% as against 19.22 MnT in last fiscal.
Serajuddin mine recorded iron ore dispatches at 11.80 MnT in FY'20, an increase of 52% as against 7.75 MnT in FY'19. Serajuddin mine produces around 10 MnT iron ore annually and has an EC limit of 15.15 MnT p.a. In the Odisha block auction, the miner retained its Balda block at a premium of 118.05%.
OMC, state-owned miner, recorded 14% rise in dispatches to 10.37 MnT for FY'20 as against 9.12 MnT in FY'19.
RP Sao, Essel Mining and Kaypee Enterprises depicted rise in yearly dispatches at 7.12 MnT, 5.71 and 5.45 MnT respectively.
Odisha Iron ore Dispatches in FY'20 & FY'19
| Seller | FY20 | FY19 |
| Rungta Mines | 23.34 | 19.22 |
| Serajuddin | 11.80 | 7.75 |
| OMC | 10.37 | 9.12 |
| RP Sao | 7.12 | 3.67 |
| Essel Mining | 5.71 | 5.54 |
| Kaypee Enterprises | 5.45 | 5.26 |
| KJS Ahluwalia Group | 5.29 | 5.61 |
| A.M.T.C | 4.42 | 3.07 |
| Indrani Patnaik | 3.03 | 3.44 |
| KN Ram | 2.80 | 2.12 |
| SN Mohanty | 1.52 | 1.54 |
| Others | 8.24 | 7.03 |
| Grand Total | 89.08 | 73.39 |
Quantity in MnT
Excluding movement for export & movement of SAIL and Tata Steel
Provisional Data
Source: Govt. of Odisha
Amid a phase of lockdown and lull, the Odisha steel & mines department has initiated action to resume operations of merchant iron ore, manganese and chromite mines whose lease validity had ended on March 31, 2020.
The state government had successfully auctioned 21 lapsing merchant mines and Letters of Intent (LoIs) were issued to all successful bidders.
In a letter to the state forest & environment department, Deepak Mohanty, director of mines and special secretary (steel & mines) has urged for collection of NPV (or Net Present Value) at the rate of Rs 7.5 lakh per hectare. The collection of NPV will enable the state authorities to issue vesting orders- a prerequisite for recommencing mining from the merchant leases. The state steel & mines department would issue vesting orders under the provisions of Mineral Concession (Amendment) Rules, 2020.
Odisha iron ore block auction details
