Odisha government had issued closure notices to 26 mines, which are waiting for second and subsequent renewal, following the Supreme Court’s stay order in Odisha on 16 May, 2014. Despite of this, SAIL has enough iron ore inventory to run plants.
The Supreme Court had ordered temporary closure of Iron ore mines in Odisha working under deemed renewal. The mining industry anticipates the closure of mines would have heavy impact on the Iron ore production in India.
However as per the news, Steel Authority of India Limited (SAIL) has sufficient stock to run its plants despite of the Supreme Court’s stay order in Odisha on 26 mines which are working under deemed renewal.
CS Verma, the Chairman of SAIL, stated in media, “We have enough inventories to maintain our plant operations for now and therefore, there is no cause for apprehension in this context.”
SAIL’s two major mines will be impacted over temporarily mining embargo in Odisha. The Bolani mine used to supply raw material to its Durgapur plant and production from Barsua mine used to cater the need of Rourkela Steel plant.
“It become vital to speed up the steps required for the approvals of mining leases renewal by the state government,” he further added.
However, the operations of 26 leases including SAIL & Tata would remain suspended on Court’s order. Tata Steel is likely to be hit badly by mining ban and so did not offer any statement to media.
It is expected that the company secures 75% of its raw material requirement from Odisha to feed the needs of its Jamshedpur facility, which has steelmaking capacity of around 10 MnT pa.
Apart from SAIL & Tata Steel, the order also impacts mining operations other mining & metals industry like OMDC and Essel Mining & Industries. As per a preliminary calculation, the closure of 26 mines could mean upto nearly 30 MnT of annual output of the market.