By Our Correspondent
BHUBANESWAR/JODA/BARBIL: Iron Ore Exporters and Traders in Odisha continuing their illegal export and trading and easily transporting minerals from Joda-Koira-Baripada and Skinda circles of State’s mineral rich Keonjhar, Sundargarh, Mayurbhanj and Jajpur districts and very tactically shipping it from Paradip Port, Haldia Port and Visakhapatnam port to China and other Countries while evading custom taxes and duties. Amid increased spot iron ore fines price in China and supply tightens in Odisha, export prices have move up and these illegal traders getting a free hand to run their unholy nexus.
After the Black Rose episode, now talks are on how mineral trades and exporters using MV Magnum Fortune vessel to continue their unholy business. Paradip Port became a safe haven for these illegal traders while timely help they are getting from offices of Odisha Director of Mines, Joint Director Mines, DDM-Joda, DDM-Koira. Paradip port had handled 25.73 million tonnes of cargo during the first quarter of the current fiscal, the highest among major ports in the country. The PPT had joined the exclusive club of “100 million tonnes ports” by handling a record 103 MMT traffic in 2017-18.
As per the rules and guidelines of Indian Bureau of Mine(IBM), iron ore having ferrous content less than 57% are made free of custom taxes and duties while 30% of the total value of the exported minerals has to be paid as custom taxes in case the iron ore contains over 58% ferrous content. How such high quality minerals were being exported and shipped easily from Paradip, Visakhapatnam and Haldia ports in Odisha, West Bengal and Andhra Pradesh under the grab of low quality mineral in the ships. How such illegality continuing despite having adequate laws to check it.
The recent raid on Keonjhar-based BS Minerals Pvt Ltd, an exporter of iron ore fines and finding of evasion of customs duty of Rs 8,07,66,314. The seized iron ore fines , 52,051 tonne goods worth Rs 26.92 crore, that were to be exported from Paradip to China in MV Magnum Fortune vessel, has opened more Pandora box. Due active role of Commissioner of Customs (Preventive) Debashish Sahu, BS Minerals Pvt Ltd had to submit a bank guarantee of Rs 1 crore in addition to the deposit of a bond of Rs 5.4 crore for taking provisional release of the goods.
The recent incident may be a tip of the iceberg while sources claimed that in Joda-Barbil-Koira-Baripada regions, several mineral exporters have been exporting minerals to the international market easily without paying taxes and duties to both State and Central Government.The allegations assumes greater significance as the mineral are being exported in MV Magnus Fortune Ship was in fact transported from Joda-Koira mining circles of Odisha’s Keonjhar and Sundargarh.
Surprisingly, such huge quantity of high quality iron ore are being exported and shipped with Odisha Director of Mines, Joint Director Mines, DDM-Joda, DDM-Koira keeping mum and seems patronising illegal export and shipping of iron ore from Odisha by iron ore exporters and traders.Sources said iron ore traders and got license from the office of Joint Director, Joda in Keonjhar but irregularities continues to be unabated in Odisha’s mineral traders.
B Prabhakaran of Thriveni Earth Movers Pvt Ltd, who has multiple operations in India and Abroad, expects to become the third largest Indian iron ore exporter with a forecast export volume of around 5.54 million mt for FY2020-21. Many other non-Odia traders and exporters keep continuing their trade and export while evading custom taxes and duties.
Facing iron ore shortage, Odisha-based steel firms, which do not have operational captive mines, have asked the government to make it mandatory for all iron ore miners in the state to sell at least half of their produce to Odisha-based sponge iron and steel units unless they consume 50% for their own captive use. Only the balance quantities of ore could be exported to other parts of the country or abroad.While this may amount to deviation from the auction rules, in the absence of such stipulation, the local industry will suffer a lot and production will take a huge hit.
Odisha produces 110 MT iron ore a year; the last fiscal was an aberration, when the production grew to around 145 MT. Leases for 19 merchant mines, which contributed around half of Odisha’s 115 MT iron ore production in 2018-19, expired in March and 18 of them were successfully auctioned and several of them have started operations.Of the total 20MT exports to China in the first six months of the year (exports to China in the complete previous calendar year stood at around 25 MT) which includes low grade iron ore, high grade iron ore and pellets.The higher exports and higher sale to other states of India have led to serious shortage to Odisha’s sponge iron industry.Consequently, the prices have gone up in the state and adjoining states.
It may be noted here that the Mongolian-flagged vessel ‘Black Rose’ had capsized in Bay of Bengal on September 9, 2009. The cargo ship, registered with UK-based South of England P&I Club, had no valid document and even the insurance papers deposited by the vessel owner was found to be fake.Though the Mongolian flagged Black Rose did not have any valid licence or insurance documents, the vessel was allowed to dock in the port and two firms of Odisha dispatched iron ore fines.While the vessel capsized on September 9, 2009, its registration was valid only up to April 2009.
