By Our Correspondent
JODA/KOIRA/RAIRANGPUR: The operations in as many as 21 Iron,Ore, Manganese and Chromites block under Joda, Koira and Rairangpur circles of Odisha’s mineral bearing Keonjhar, Sundargarh and Mayurbhanj districts, those are expiring by March 31, and auction for which, had already completed, may face trouble in continuing operations in view of the outbreak of COVID-19.
Together, the 21 mines have approvals to raise around 70 million tonnes per annum. Most of the small to mid scale steel plants, sponge iron units and pellet makers are dependent on the merchant ore market to feed their units.
With nationwide lockdown put in place and the consequential delay in paperwork needed to resume these mines is bound to delay the recommencement of the mines.“All successful bidders need a vesting order from the department before they could extract ore from the blocks”, sources said.
Odisha had attracted frenzied bids to 21 merchant blocks offered for online auctions. Average premium was in excess of 100 per cent. JSW Steel proved to be the major disruptor, securing four iron ore mines. ArcelorMittal won the Thakurani mine, quoting a premium of 107 per cent. Among other key steel makers, Jindal Steel & Power Ltd (JSPL) bagged the Guali mine after committing a premium of 144 per cent.
A letter from the Union steel secretary to state governments to ease lockdown orders on operative mines, steel industries, process plants as well as entry and exit of workers and movement of raw materials and finished products to and from the plant premises has not fully calmed frayed nerves.
