By Bizodisha Bureau, Bhubaneswar, October 30, 2019: The Odisha government has assured steady supply of iron ore even after the validity of merchant mines ceases by March 31 2020. The steel makers had apprehensions about crunch in the iron ore supply.

“It would not be a supply shock after March 2020. We have allowed both end user industries and merchant miners to build up stocks. Twenty four merchant mines are lapsing by 2020 and we have started the auctions process of these mines. Till now, we have completed auctions of two chromite mines,” said R K Sharma, additional chief secretary (steel & mines), Odisha government.

The state boasts of the country’s largest iron ore output. In the last fiscal year, Odisha churned out 114 mt, contributing more than a half to the nationwide production of 207 mt. The state’s iron ore output largely feeds the domestic steel plants and other dependent end-use industrial units while only a fraction (of production) is shipped overseas.

Sharma said about half of the state’s iron ore production, which corresponds to a quarter of the country’s output, will not be coming from these lapsing mines.

He was speaking at the ‘India Mining Conclave’ hosted by the Indian Chamber of Commerce (ICC) in collaboration with the steel & mines department, Odisha government.

Odisha has successfully auctioned two lapsing chromite leases — Misrilall Mines and Kamarda mines — under the leasehold of B C Mohanty. T S Alloys, a wholly owned subsidiary of Tata Steel has emerged the highest bidder for both the mines.

Besides, the state government has notified 20 more lapsing iron ore and manganese ore blocks for auctions. On top of that, nine more virgin iron ore blocks have been listed for online auctions.

Odisha has 17 operative merchant iron ore mines which are producing around 55 million tonnes (mt) against the approved environment clearance (EC) limit of 80 mt.