OMDC mining resumption delayed by 3-4 months

Orissa Mineral Development Company (OMDC), which recently bagged environmental nod to start one of its iron ore mines, would not be able to start mining operations soon.

It now  needs a permission from the Orissa government to transport the mined ore, according to managing director Satish Chandra said.

“After getting environmental clearance for Kolha-Roida mines we have asked the Orissa government to provide us with despatch clearance. The state government requires that for every tonne of ore specific permission under Theft and Smuggling Prevention Act is required, for which exclusive networked weigh-bridges are required to be set up,” Chandra told shareholders during the annual general meeting of the company.

The company is putting up these weigh-bridges, for which an agency has been appointed, he said, adding, “It may take 3-4 months. Since the mine was closed for long period, we also have to build the road.”

The state government had framed Orissa Minerals (Prevention of Theft Smuggling & Illegal Mining and Regulation of Transportation, Storage & Trading) Rules 2007 to curb the illegal mining activities and trading.

Apart from Kolha-Roida, OMDC has obtained forest clearance for Dalki manganese mines and Bagiaburu iron ore mines, and completed almost all the formalities for environment clearance in regard to the remaining mines.

“The company will endeavour to reopen most of the balance mines during 2012-13, provided we get all the clearances,” chairman A P Choudhury said.

In January 2011, Rashtriya Ispat Nigam Ltd (RINL) acquired 51% stake in the government-owned Eastern Investments, a holding company for OMDC and Birsa Stone Lime Corporation, both miners with iron ore, limestone, dolomite and manganese ore reserves.

On merging Birsa Stone Lime with OMDC, Chandra said it could pose a problem as the former’s mining licences are also being renewed.

“Birsa’s mines are being renewed. Transferring leases at this stage may create procedural delays. It has been decided by the government after long deliberation that first we should get the mines renewed in favour of the company,” he said.

RINL is planning to source dolomite from Birsa’s mines.
“Since the distance between Birsa’s mines and RINL is quite long and transporting at present freight rates makes it unremunerative, we are in talks with the Railways to provide us some concessions. So when Birsa’s production would go up, transporting at a long distance would make sense. Additionally, we are planning cement plants, while SAIL may become our customer for their expanded capacities,” Choudhury said.