By Our Correspondent
BHUBANESWAR/KOIRA/JAJPUR: The defunct Neelachal Ispat Nigam Limited with the help from National Mineral Development Corporation Limited has started its mining operations in Odisha’s mineral rich Koira region of Sundargarh.The operations of NINL iron ore mines at Mithirda mine block have resumed, sources said.
Sources said NINL with assistance from NMDC limited resumes mining operations in Odisha from Friday. Black small square to provide impetus to the supply of high grade iron ore in Odisha. Earlier, NMDC had signed an MoU to extend assistance to NINL.
The inaugural function was attended by Sumit Deb, CMD NMDC, PK Satpathy, Director(Production) NMDC, RK Jha, MD NINL and senior officials of NMDC and NINL. Commenting on the development, NMDC CMD Sumit Deb said ” Iron Ore mining by NINL will not only ease ore security in the State but will go a long wat in eliminating the financial constraints faced by NINL. NMDC extends full support to the NINL team in their new endeavor.
“Under the aegis of the Ministry of Steel, Ministry of Commerce, DIPAM, NINL approached NMDC for support. To provide impetus to the supply of high grade iron ore in the State of Odisha, NMDC signed a MoU to extend assistance to NINL,” a press statement issued by Hyderabad headquarters NMDC said.
Considering the capacity of the plant (1.1Mt), NINL was granted Mining Lease(ML) over an area of 1798.338 ha in Koira block of Sundergarh and Keonjhar districts of Odisha for Iron ore for its captive use. Mining lease area over 1798.338 Ha was granted in favour of Neelachal Ispat Nigam Limited vide the State Govt. Letter No. 4386, dtd. 05.06.1999, letter no. 4858 dtd.19.06.1999 and letter no. 4553, dtd.27.08.2002.
The mining plan over the area was approved by IBM vide letter no. 314(3)/2003- MCCM(C)/MP-13 dated 02.08.2004 as per the provision under Rule 22 of MCR- 1960, Amendment 1987. Subsequently 924.048 Ha area was surrendered to State Govt. after detailed exploration carried out by MECL.
Thus, the mining lease area admeasures about 874.290 ha, of which about 871.427 ha falls in Sundargarh district and the remaining 2.863 ha falls in Keonjhar district. Total ML area is covered under nine villages out of which Mithirda, Kriyakudar, Basada, Dalita, Rusibenua, Mandajoda and Kadalia villages are coming under Koira Tehsil of Sundargarh district and Pirhapokhari & Handibhanga villages coming under Barbil Tehsil of Keonjhar districts.Mining Plan for 2.5 Mt capacity Iron Ore Production has been approved by IBM over the revised lease area vide letter no. 314(3)/2008-MCCM(C)/MP- 53/1086 dated 16.06.2009
NINL Executive Association has welcomed the move. “After 10 months of delay, finally mining operations resumes, we hope, Management will pay the salary of the employees,” NINL Executive Association General secretary Ajit Kumar Pradhan said.
On 09 Mar 2021 NINL has got permission to sell 50% of annual capacity of iron ore mines to sell in open market to meet employee salary & arrear salary with other legitimate dues. Even if MDO has been selected but production from mines will take time. Employees of NINL are helpless, almost 2 years plant production is stopped, no steps from shareholders or both Central State Goverments were proved fruitful. Association demanding NINL merger with SAIL/RINL/NMDC.
The Cabinet Committee on Economic Affairs last year had gaven its in-principle approval for the strategic disinvestment of equity shareholding of MMTC (49.78%), NMDC (10.10%), MECON (0.68%), BHEL (0.68%), IPICOL (12.00%) and The Orissa Mining Company Ltd (20.47%) in NINL.
SBI Capital Markets Ltd is the transaction adviser appointed by the department of investment and public asset management (DIPAM) for the proposed 100% strategic disinvestment of NINL. NINL has a 1.1 million tonne per annum pig iron production capacity, with its captive iron ore mine having mineable reserves of around 90.91 million tonnes.
