India: OMC faces disruptions in iron ore dispatches amid local unrest

Iron ore dispatches from several key mines of Odisha Mining Corporation Ltd. (OMC) have been temporarily suspended due to local unrest.

OMC, a state-owned enterprise and the second-largest merchant iron ore miner in India with an annual production of 33 million tonnes (mnt) halted mining activities as of 6 July 2024.

Sources report that the disruption stems from transport-related issues, where the local MLA, affiliated with the BJD party, is advocating for the involvement of local people in transportation activities. This unrest follows a change in power in the state after 24 years.

As per sources, the affected mines include Jilling, Khadbondh, Banspani, Unchabali and Tiringpahar, which together produce approximately 7 mnt of iron ore annually*, accounting for 20% of OMC's total iron ore production.

In a formal letter to the Chief Goods Supervisor/Station Manager of SE Railway, OMC provided details pertaining to the situation and emphasized its inability to continue operations until the local issues were resolved. To prevent further complications, OMC has requested that no additional rakes be supplied to the mentioned sidings until further notice.

*Correction: Production volumes mentioned are annually which were earlier mentioned as monthly