Top producer Odisha witnessed improved iron ore output at 14.4 million tonne (mt) during April 1-June 22 period, compared with close to 13 mt produced in the same period last year as legal restrictions slapped on mining activities have been lifted.
“Based on our weekly performance review, I can say that the situation is gradually improving. I expect the production will go up further after few months when the key mines will start producing after lease extension,” said U C Jena, head of IT wing of the state mines directorate.
The state government has so far signed agreements to extend lease validity of 17 mines out of 26 mines which were asked to halt production by Supreme Court in May last year due to invalidity of mining leases and only one iron ore mines of Steel Authority of India Ltd (SAIL) is operating currently. The suspension of key mines had affected iron ore out of the state by around 40 per cent to 47.73 mt in 2014-15, the lowest in last 10 years.
However, the government hopes the production might touch 65 million tonne in 2015-16 after the dispute related to lease validity was settled through the new Mines and Minerals (Development and Regulation) Act, 2015.
“Most of the mines which have their leases extended now are expected to start production after 3-4 months as they need some time to redeploy machines, manpower and have to make arrangements for other necessary items required for excavation of iron ore. When the major mines will start production, the output is definitely going to rise,” Jena added.
In the last fiscal, the state government had set a target of at least 57 mt production from operating mines. But when the Supreme Court ordered that mines which have completed 50 years of operation since lease grant must halt production, 26 large mines had to halt operation immediately. In September and October last year, three more mines were asked to stop excavation by the government based on the top court order.
Anticipating losses in mining revenue collection, the state government in November 2014 had requested Centre for allowing mining output enhancement applications of four mines totalling 16 million tonne as output restrictions on large iron ore mines has resulted in some deficit in revenue collection target.
Prasanta Patnaik