Prices of iron ore produced in Odisha may drop in coming days with the prospect of its improved availability.
This follows the State Government’s decision to allow liquidation of the stocks raised till October 2, 2012, according to informed sources.
An estimated 100 million tonnes are believed to have piled up in different mines in the State ever since the State Government clamped down restrictions on iron ore mining and transportation nearly three years ago following complaints of irregularities.
But one is not sure if the entire 100 mt will be suitable for steel-making. According to one estimate, only half of it is fit for use.
Currently, the prices of iron ore produced in Odisha range from a low of Rs 1,650 to as high as Rs 2,600 per tonne depending on the quality and delivery, according to Steelmint, the research organisation devoted to steel and mining sectors.
The Department of Steel & Mines, Government of Odisha, has issued an order stating that the standalone mines, which have been allowed to operate under the deemed extension even as they await secondary and subsequent renewals of mining leases, will be eligible to release their stocks raised till October 2,2012.
The new policy guidelines in this regard came into force from October 3, 2012, it is learnt.
Volume of stocks
The principal secretary of the department has directed the mining officials to verify the accounts and records to determine properly the actual volumes of stocks held till the cut-off date.
It has been further stipulated that 50 per cent of the stocks of both lumpy ore and the fines have to be sold to standalone mineral-based industries in the State in an equitable manner and at market prices. It has also been made clear that any ore raised on or after October 3, 2012 shall not be sold.
Liquidation of stocks
It might be noted that the All Odisha Steel Federation, the body of more than 200 steel and sponge iron producers in the State, has been demanding for quite some time the liquidation of the iron ore stocks built up over the years following the Government restriction.
What was the point in creating artificial shortage of the mineral when sufficient stocks of it were available? asked the federation.
Even the Shah Commission, inquiring into the whole gamut of issues relating to iron ore mining and transportation in major iron ore producing States, is believed to have drawn the attention of the Odisha Government to it.