State denies JSPL complaints about iron ore shortage – the New Indian Express
BHUBANEWAR: The Odisha government has strongly refuted accusations by Jindal Steel and Power Limited (JSPL) of a shortage of iron ore for end-use factories and the price of the ore here being one of the highest in the country.
In a point-by-point rebuttal of all the issues raised by JSPL in a recent communication to the state government, the Ministry of Steel and Mines stated that the average selling price published by the Indian Bureau of Mines (IBM ) showed that the increase in ore prices varied between 170 percent (pc) and a maximum of 300 pc and not 500 pc as indicated by the company.
âIt is observed that while the prices of iron ore between February 2020 and April 2021 in the 60 Fe grade and above lumps and fines have seen an average increase of around Rs 1,453 per tonne (1, 6 tonne of ore is needed to make one tonne of steel), steel prices have increased sharply by Rs 23,850 per tonne for hot rolled coils and Rs 27,280 per tonne for coils cold-rolled between May 2020 and April 2021, i.e. 16 to 19 times the increase in the price of iron. ore respectively, âsaid the letter from Special Duty Officer, Steel and Mines, BN Acharya.
The letter was in response to the June 30 letter from JSPL Managing Director VR Verma, who, while pointing out the problems of iron ore shortages and high ore prices, urged the state government to invoke the pre-emption policy to ensure a constant supply of raw materials to end-use factories in the state at reasonable rates. âThere are dichotomies between the prescription and the practice followed by JSPL. The concerns you raised do not match the actions on the ground taken by JSPL, âthe response said.
Responding to JSPL’s projection of 18 MT of iron ore requirement per year, the ministry said a simple calculation showed that the actual ore requirement – by the conversion factor of 1: 1.6 (steel in ore) – for its Angul steel plant with an installed capacity of 6 MTPA amounts to 9.6 MTPA assuming the plant is operating at full rated capacity. Likewise, JSPL’s claim that merchant mines are deliberately operating below the capacity of the limit approved by the Environmental Licensing Authority (EC), said: âThe tenant is observed to operate the mines ( TRB Iron Ore Mines-Koira) to 80 pc of the CE limit in the last four years since 2017-18.
Regarding the steel company’s claim of shipping and exporting iron ore as state end-use factories run out of raw material, Acharya said nearly 98% of its production in 2020 -21 and 21-22 had been shipped out of state and exported. .