The Hindu Business Line : Orissa sets terms for iron ore export

IN its efforts to set at rest the controversy over allowing the Korean steel-maker Pohang Steel Company to export iron ore, the Orissa Government today clarified that the company will be provided 600 million tonnes of iron ore for captive use in its proposed integrated steel plant at Paradip for a period of 30 years.

The company, however, will be allowed to export iron ore against import of equivalent quantity of ore from outside.

"No ore will be permitted to be used for pure trading within the country or by way of export. The company will have to achieve a number of detailed milestones before recommendation is made for prospecting licence in the first instance and the mining lease subsequently," the State Chief Secretary, Dr Subas Pani, said at the MoU signing ceremony.

However, Dr Pani said that in case the company needs to import iron ore of low alumina content, it will be permitted to export equivalent quantity of high alumina content ore to its Korean plants, subject to a ceiling of 30 per cent of ore consumed by their plant at Paradip in a given year.

"Any export of iron ore by way of swap will be allowed only after an equivalent quantity of ore has been imported for the plant in the first place," Dr Pani said, while adding that there will be no net outgo of iron ore from Orissa without value addition and the concept of net nil export will be adopted.

The recommendation for mining lease will be made in two phases commensurate with the first two modules and the last two modules of three million tonnes each.

The first recommendation will be sent only after the company awards order to the extent of 50 per cent of the civil and structural work and 20 per cent of the machinery of the first two modules.

The second recommendation will be sent when similar progress is made for the second two modules and after the first module of three million tonnes is commissioned, Dr Pani elaborated.

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