MINING AND INDUSTRIALISATION UPDATE, ORISSA - Vasundhara

Export of iron ore uncheckedThe Hindu, 27 August, 2008BHUBANESWAR: At a time when steelindustries are desperately seeking iron ore torun their plants in Orissa, export of the orefrom the State is going on unrestrained. Theclaim of the Government over adding valuesto its mineral resources will sound meresloganeering when one goes through growthfigure of iron ore production and its exportfrom the State during last five years, whichwas presented in the State Assembly onTuesday. Orissa is poised to become steelhub of the country with signing of 49 MoUfor steel plants that envisaged 76 milliontonnes of steel production per annum. In awritten reply to a query, Steel and MinesMinister Pradeep Kumar Amat said, “Allthese steel plants require 200 million tonnesof iron ore per annum to run the plants whenthey achieve the full capacity. And the totaliron ore reserves in Orissa assessed till dateis 5300 million tonnes.” “Iron ore can beavailable for these industries for 25 years.Further, some potential areas have not yetbeen prospected. After prospecting, theserve will be enhanced,” Mr. Amat said.Going by the Minister’s version, the Statehas already promised all its 5000 mt tonnereserve at rate of 200 mt per annum for 25years. Experts said if the State Governmentdid not want to earn a bad name, it shouldban the export immediately. The Ministersaid as many as 28 steel plants had alreadygone into production by making about Rs.20,000-crore investment in the State. Ironore production has been doubled from 34.88mt in 2004 to 74.50 mt in 2008. But thepresent steel production capacity stood at3.8 million tonnes per annum, whichrequired little above 6 mt of iron ore. Ironexport through sea route has also beendoubled from 8.78 mt in 2003-04 to 20.05mt in 2007-08. The remaining iron oreproduction was consumed in domesticmarket. Experts believed the gain from ironore export in terms of revenue was actually aloss. In 2003-04, the State had earnedrevenue to the tune of Rs. 59.31 crores fromiron ore production and the revenuegeneration had been more than doubled in2007-08 despite the astronomical rise of ironore price in international market.33