Pradhan holds meet with Mines Min, Odisha CM over early operationalisation of auctioned mines

New Delhi: Union Steel Minister Dharmendra Pradhan on Wednesday held a meeting with Mines Minister Pralhad Joshi and Odisha Chief Minister Naveen Patnaik for early operationalisation of auctioned iron ore mines in the state, an official statement said.

The development assumes significance as domestic production of iron ore, a key raw material for making steel, has declined during January-November 2020 as compared to the corresponding period of 2019.

The main reason for the fall in production was that the auctioned iron ore mines could not be made operational, the Ministry of Steel said in the statement.

"Steel Minister Dharmendra Pradhan on Wednesday held a meeting with the Odisha CM and Union Minister of Mines, Coal and Parliament Affairs.

"The discussions centred around resolving the issues regarding operationalisation of the auctioned iron ore mines in Odisha where production and dispatch has still not commenced.

The lease of these mines had lapsed on March 31, 2020 pursuant to which fresh auction was carried out," the statement

said.

As against a production of 123.8 million tonnes (MT) iron ore in Odisha from January to November 2019, total production in the same period in the current year has been only 98.2 MT, it said.

There were 24 mines auctioned in Odisha recently, and only five of them have been able to start production and carry out dispatch. This is the main reason for a shortfall in iron ore supply in the country, the ministry said.

In the meeting, Pradhan emphasised on the need for an early resolution in this regard by the mines ministry so that seamless availability of raw material to the end user is ensured.

"This would result in reducing the price of iron ore which has gone up substantially in the last one month due to adverse market sentiments emanating primarily from reduced supply of iron ore in Odisha from the recently auctioned mines," the statement added.