SC Hearing on Odisha Iron Ore Mines Closure May Get Postponed - Sources

According to market sources, the case hearing on the recent mine closure in Odisha was scheduled on 17 Jan'18 at the Apex Court. But there are chances that the hearing may get postponed to later this week on next week. Sources close to the matter share that it depends availability of Chief Justice in Supreme Court for the next hearing to take place.

As per Supreme Court of India website, tentatively the case may be listed on or is likely to be listed on 30 Jan'18.

By the time, the miners who have not been able to make up for the penalty payments are arranging for the funds.

However looking at scenario, in the immediate short term it seems that supply may remain a concern amid closure of few major mines. Also amongst the operational mines, few have nearly utilised their EC limits for this financial year hence they may not have enough material available for the left two months.

After the Supreme Court verdict, five working iron ore mines MESCO Steel, Serajuddin & Company, government-owned IDCOL, Essel Mining, Korp Resources and National Enterprises in Odisha have gone out of operations as they failed to pay out the penalties by the fixed deadline of 31 Dec'17. These mines have the capacity to produce 20 MnT iron ore annually.

In the Union mines ministry meeting conducted yesterday, Ministry asked all the working lessees to increase production to meet EC (environment clearance) limits in order to make for the shortfall in iron ore supply. Increased supply may push down the iron ore prices in the state.

Post closure of seven working iron ore mines in Odisha on failing to submit the penalty amounts, iron ore prices have increased significantly. Lump prices have moved up by INR 500/MT and INR 300/MT in fines.