OMC allowed to export iron ore

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Bhubaneswar: The State Cabinet on Monday allowed state-run Odisha Mining Corporation (OMC) to export iron ore, a decision expected to help the company meet its revised ore production target for the current year.

The Cabinet also approved the amendment in the long term ore linkage policy through OMC to clear its supply glut through other mechanisms.

“As per existing rules, the OMC can enter into an agreement for long term supply of ore to end-user companies or go through e-auction. Now it has been decided that they (OMC) can dispose of ore through other mechanisms also and export their iron ore. The primary reason behind the decision is that there is enough ore available with everybody and we would like to sell this ore,” chief secretary AP Padhi told media persons after the Cabinet meeting.

Besides, the Cabinet has given a nod to the State government’s proposal for long term supply of ore from OMC to industrial units in the State facing a shortage of iron ore.

“As per the previous rule, companies having no captive leases for their operations could sign long term lease agreements with OMC. Now, OMC is having a lot of surplus ore and there are several companies having iron ore lease but not enough to meet their consumption needs. To meet the shortfall, they can enter into an agreement with OMC for long term ore supply,” Padhi said.

Two days back, OMC had set a revised target to produce 8.64 million tonnes of iron ore and chrome in the current financial year. The corporation had recorded a production of 6.9 million tonnes of the two mineral in 2015-16.

“We have put in place the action plan for enhancing production of OMC. The achievement by end of July was 2.41 million tons of iron ore and chrome as against the annual target of 8.64 million ton,” OMC MD Vineel Krishna told reporters after a review meeting on Saturday.

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