India: Supreme Court allows OMDC to resume mining operations in Odisha
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The Supreme Court has allowed Orissa Minerals Development Company (OMDC) to resume iron ore and manganese mining operations and dispose off unsold mineral stocks after the company made the court-ordered payment of compensation in a case.
After the decision, OMDC's Roida Bhadrasahi iron ore & Bhadrasahi iron ore & manganese ore mines can resume operations. These mines have an iron ore reserve of 81.03 mn t and 10.43 mn t of manganese ore. The approved production capacity of the iron ore mines is 1.8 mtpa.
However, there is some confusion in the Department of Steel and Mines, government of Odisha as a copy of the order has not yet reached the hands of the concerned official.
When SteelMint approached a high-ranking official in the Department of Steel & Mines in the Odisha government, seeking to know by when OMDC could resume operations, he said he will not be able to answer because he is yet to see a copy of the order. "Whether the order is only to dispose of the minerals already excavated by OMDC or whether the order is to both allow OMDC to despatch and then also resume mining operations after having the valid statutory clearances, I am not aware. I do not know the contents of the order."
He elaborated that he had read the news in the media a few days back, where he learnt that OMDC has been asked to resume mining. "In fact, OMDC officials have also spoken to me but I have sought a copy of the order. Without seeing that, I cannot comment on the issue. Once I get a copy of the order I will know whether the court has fixed any timeline within which the stock has to be disposed of," he informed.
He also said he does not know what the available stock is.
OMDC, a subsidiary of RINL, has iron ore and manganese ore mining leases at Barbil, Odisha with estimated reserves of about 206 mn t of iron ore and 44 mn t of manganese ore.
The resumption of mining operations will marginally alleviate shortage of iron ore in the domestic market, which has been squeezed by the continued closure of 14 of the 19 auctioned mines in Odisha and monsoon and coronavirus-related disruptions in mining and logistical operations. Uptick in downstream demand has also supported iron ore price gains.
