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Odisha is targeting a production of 70 mt of iron ore in 2015-16, with top miners pinning their hopes on restarting operations even as they await a final nod from the Supreme Court, which is slated to consider their appeal later this month.
The delay in reopening mines in mineral rich states is taking a toll on the industry. With lower supply of iron ore, India, traditionally a net exporter, ended up importing nearly 15 million tonnes (mt) of iron ore in 2015. More significantly,
fewer mines in operation have added to the problem of unemployment and socio-economic issues and lower revenues for the state and central government.
While Odisha’s share dipped to 40% last year, with 52.02 mt out of the total 128.9 mt of iron ore produced in India, the state has mostly contributed to about half of the country’s production. In 2014, it produced 76 mt of the total of 152 mt of ore produced, while in 2013 it produced 64.31 mt out of a total of 136.01mt.
“The state government is keen to start operations at the mines,” Mr.Deepak Mohanty, director of mines at Odisha’s Directorate of Mines said. Some 102 mines in Odisha and 21 in Jharkhand on deemed extension were closed and asked to revert to SC after required statutory clearances.
“Some mines have received all statutory clearances and are awaiting SC nod to restart operations. Once these and other mines come into production the state’s contribution will improve further,” he said. Despite the constraints, Odisha has been one of the better performers. Till January 15, domestic iron ore production has been 98 mt, of which Odisha produced 55 mt, more than half of the share. “Till date, the state has produced around 63 mt. We hope to end the year with 70 mt,” Mr. Deepak Mohanty said.
The need of the hour is to urgently start operations in mines which have all statutory nods in place so that iron and steel industry is assured of higher availability of ore. This will also resolve continued unemployment which has serious socio-economic ramification,” said a consultant with a large Odisha mining company, who did not wish to be identified. Global iron ore prices have crashed to $40 per tonne from $180-190 per tonne in 2011-12, adding to miners’ woes.
The MMDR Amendment Act provides that mines, other than captive ones, shall be extended and deemed to have been extended up to March 31, 2020 with effect from date of expiry of the period of renewal last made or till completion of renewal period, if any, or for 50 years from the date of grant of such lease.
Prasanta Patnaik 
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