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[Ferro-Alloys.com] Business Standard reported that the outbreak of the deadly Covid-19 pandemic has queered the pitch for seamless continuity in operations of 21 iron ore, manganese and chromite mines in Odisha. To facilitate a smooth transition in ownership of mines and their uninterrupted operations, the government, through an Ordinance, extended the validity of all statutory permits by two years. The state government too, showed alacrity in completing auction formalities well before the end of lease tenure of mines. But a nationwide lockdown to contain the spread of coronavirus and the consequential delay in paperwork needed to resume these mines is bound to delay the recommencement of the mines. BS report quoted a source as saying that “Only a few critical departments of the state machinery are functioning amid this Covid-19 induced lockdown. Since the steel & mines department is not operative now, the new leaseholders have to wait for necessary approvals. All successful bidders need a vesting order from the department before they could extract ore from the blocks.”

 

The delay in timely resumption of merchant mines had raised fears of demand-supply mismatch. Together, the 21 mines have approvals to raise around 70 million tonnes per annum. Most of the small to mid scale steel plants, sponge iron units and pellet makers are dependent on the merchant ore market to feed their units. （BUSINESS STANDARD）