From India over the weekend:
The Odisha Government on Saturday issued three “in-principle” iron ore mining lease renewal orders to SAIL.
SAIL sources told Business Line that registration of the lease deeds for the three mines Bolani, Barsua and Kalta would formalise the renewal of the lease for the next 20 years.
The SAIL sources said mining operations would restart after a fortnight at the company’s mines in Odisha from Sunday. Bolani produces 5.5 million tonnes (mt) of ore a year, while Barsua and Kalta’s annual output is 2 mt and 1.2 mt, respectively.
Apart from SAIL mines, a mine belonging to Odisha Mining Corporation was also issued renewal order.
Tata Steel’s five iron ore mines — Katamti, Khondaband, Joda East and West — and a manganese mine, however, were yet to receive the renewal order. All these mines were identified by the State Government for renewal in the first batch.
Sources said Tata Steel mines were expected to get the clearance early next week.
Looks like the Odissa capacity crunch is resolving quickly. In fact. 20 million tonnes of the original 40 million tonnes that was stripped of permits will be back on line this week. The remainder will presumably return over the subsequent five months. It’s not a game changer for seaborne iron ore demand.
