India: OMECL to get mining rights of Tata's Sukinda Chrome Ore Mines

Ministry of Mines, Government of India has notified the Odisha Mineral Exploration Corporation Limited (OMECL) as a separate legal entity to undertake prospecting operations of Sukinda Chromite Mines in pursuance of the second proviso to sub-section (1) of Section 4 of the Mines and Minerals (Development and Regulation) Act, 1957. It has informed about the decision to reserve the Sukinda Chromite Mining Lease, over 406 hectares of M/s Tata Steel in the district of Jajpur, under section 17A(2) of MMDR Act, in favor of M/s OMECL.

OMECL Invites Bids for Mine Operators
ODISHA MINERAL EXPLORATION CORPORATION LIMITED (OMECL) invites bids from experienced Mine Operators for hiring of plant and machineries for mechanized mining involving excavation of overburden and chrome ore in all kinds of soil and rock up to a depth of approximately 190 Meters from the average natural surface level by deploying HEMM, Drilling & Blasting wherever necessary, dewatering (by continuous pumping out on an average around 8,700 Kilolitres of water per day throughout the year except during the monsoon months when the pumping requirement will be around 12,000 Kilolitres of water per day), transportation of overburden, sub-grade Chrome ore and Chrome ore to respective yards.

The period of the contract is 3+3 years with peak rated capacity of 42,40,000 cu. Meters (+- 10%). The last date of online bid submission is up to 4 pm on 14 Jan'20. Spread over 406 ha in Odisha's Sukinda valley, the chromite mining block has huge Chrome ore resources of 95,821MnT.

Chrome Ore Supply Likely to Shrink
The country may face a high shortage of Chrome ore in the market in the short-term. TATA Steel used to give Chrome Ore for conversion and after losing the Sukinda Chromite mines, the conversion will no longer be possible, and the dependant companies of TATA for conversion will also participate in Chrome Ore auctions. It is highly anticipated that a state-owned company would not be as efficient as TATA Steel in producing Chrome Ore. There is also a chance that if the severity of the unavailability of Chrome ore deepens, the possibility of imports may arise. However, it is only possible if OMECL increases its quantity as soon as possible. However, by the end of 2020, the supply situation may stabilize. Meanwhile, the situation of the Chrome market remains pessimistic until the supply situation is checked.

Request For Proposal (RFP) Sukinda Chromite Mine