BHUBANESWAR: Union Mines Minister Narendra Singh Tomar, on Tuesday, asked operating mining companies of the State to increase iron ore production within permissible ceilings to ensure steady supply of raw materials to steel industry.
Tomar met mining lease holders from Odisha to review iron ore production in the wake of closure of six mines for failure to pay penalty imposed by Supreme Court for excess extraction. The miners still have headroom to increase production within their permissible environment clearance and other limits, Tomar said and requested them to step up production to the maximum possible.
Though the production in January is feared to be lower, the operating miners assured to enhance iron ore production so that steel industry remains fully supplied.The Union Minister assured full cooperation from the Ministry for enhancing production and miners are free to approach him with specific problems which they may encounter.
As a large number of iron ore and manganese mines remained inoperative due to lack of statutory clearances and closure order from the apex court, the miners sought the intervention of the Centre for operationalisation of mines. They further submitted that most of the closed units having valid lease have the intent to pay the penalty imposed by the Supreme Court, but are unable to due to cash crunch.
The Union Minister is reported to have advised the miners to approach the apex court as the matter is pending there.
The Union Mnister’s meeting with the Odisha mines assumed significance in view of the soaring prices of iron ore hitting the steel industry hard. Prices of steel has gone up, making the steel industry less competitive in the global market. Besides, the steel price hike will hit the domestic consumers.
The Supreme Court, had on August 2 last year, imposed a penalty on 152 iron ore and manganese lessees in the State for illegal mining. The apex court had imposed a penalty of 17,576 crore to be paid by the defaulting mines by end of 2017. The State Government received compensation amounting to `8,223 crore from 72 mines.