Business Standard
reported that with the passage of the Mines and Minerals (Development and
Regulation) Amendment Bill in Parliament, action will now shift to
mineral-bearing states paving way for higher ore production, but a lot depends
on how quickly state governments set the ball rolling in terms of auction of
mining leases.
According to the ministry of mines, 199 concessions, including 15 iron ore
leases, are expected to be auctioned by various state governments in the next
few months.
The Federation of Indian Mineral Industries estimates iron ore production in
2015-16 at 135 million tonnes, a mere eight per cent growth over the current
financial year. In 2014-15, the production is estimated at 125 million tonne.
Of this, Odisha will be the major contributor at 50 million tonne, followed by
Chhattisgarh at 25 million tonne. Jharkhand and Karnataka stand at subsequent
places with 19 million tonne and 17 million tonne, respectively.
Mr Basant Poddar senior VP of FIMI said that “A minor growth in production
could be seen in Karnataka next year. Goa will start production only towards
the second half of the next financial year. If all goes well, Goa could produce
around 10 million tonne, while Karnataka might add 5 million tonne more. Odisha
will continue to be the largest producer next year as well.”
According to Mr Poddar, in addition to auction of mines, state governments
should also support more explorations to identify new mining reserves and put
them up for auction.
Mr RK Sharma, secretary-general, Fimi, said that “There is a lot of uncertainty
prevailing in the mining industry as state governments are not coming forward
to take quick action. A lot depends on state governments and the Centre as to
how fast do they start the process to auction mining leases.”
Mr Sharma said that the sector has been waiting for several years to get new
concessions in all states. According to him, there are many impediments in the
growth of iron ore production such as huge pile up of ore stock at mine heads.
The quantity is estimated at 124 million tonne as of March 2014. Of this, 104
million tonne are iron ore fines and the rest are lumps.
Source - Business Standard