The Orissa government today directed mining leaseholders to sell at last 50 per cent of iron ore lumps and 50 per cent of the fines produced from the mineheads to steel and sponge iron makers in the state every month.
Over 200 sponge iron makers and steel producers, who don’t have captive iron ore mines, are reportedly on the verge of closure after several mines closed down due to lack of regulatory approvals since the last two years.
Mines that were in operation were charging exorbitant rates from the user industries.
Concerned over the distress situation faced by these industries, the state steel and mines department on Wednesday asked all the deputy directors of mines to ensure that at last 50 per cent of the iron ore lumps and 50 per cent of the fines produced from the mines in any month, but not put to captive use by the leaseholder, would be sold to the stand-alone mineral-based industries located in the state at a fair market price.
The steel and mines department issued the order under the provisions of the Mineral Concession Rules, 1960. The order would be effective immediately.