The Supreme Court has quashed Odhisha high court’s order on May 8,thereby reviving the state government’s petition to allot iron ore licence to Posco in Khandadhar hills; now the Union government will decide if South Korean steel maker Posco will get iron ore for its steel plant in Odisha. The Union government has to consider all objections raised by various parties against permitting mining of iron ore in the area.
Mining of iron ore
The Korean steel major has been struggling to set up the unit for the past seven years, and has scaled down its original plans considerably to placate the locals -it has revised its land requirements for the first phase from earlier 4,000 acres to not more than 2,700; and it has cut it speak capacity for the first phase from 12 million tonnes to 8 million tonnes. But whether it will manage to make itself welcome in the area with these concessions is still to be seen.
In the meantime the state government has already acquired 2,000 acres for the project; an additional 700 acres are to be acquired soon. This is necessary since Posco has sought at least 2,700 acres to start construction of an eight million tonnes per annum steel mill in the first phase. The capacity will be ramped up to full committed level of 12 million tonnes as and when the rest of the required 4,000 acres land is acquired.
The company expects production from its 8 million tonnes first phase to start in the first half of 2018.