Kolkata based Orissa Minerals Development Company is set to enter the big league of mining giants in the country. The company has access to almost 206 million tonnes of iron ore reserves and 44 million tonnes of manganese ore reserves spread across six mines aggregating 4,365.262 hectares in Barbil of Orissa’s Keonjhar district.
It is set to see its biggest mines the Thakurani iron and manganese mines, with an area of 1,546.55 hectare become operational again soon.
Mr Satish Chandra CMD of OMDC told DNA that “The mine will be operational by this month end with an annualized production capacity of 300,000 tonnes per annum. We have also applied for the enhancement of production of the mine to three million tones, which is in the final stages of clearance.”
Another iron and manganese mine Kolha Roida, with an area of 254.952 hectare is also expected to start production by this year end.
Mr Chandra said that “It is currently under litigation and we expect around a month’s time before production can begin adding that the company is looking at mining close to 100,000 tonnes per month from the mine once it is ready.”
According to Mr Chandra, the total production this year would not be too high as six months are already over and it expects total production by March end to be close to last year’s figure.
However, production could increase significantly next year. OMDC produced a total of 564,000 tonnes of iron ore and 17,000 tonnes of manganese ore in the year ended March 2010. It also posted record sales of 60,000 tonnes of sponge iron last fiscal.
Meanwhile, OMDC is also expecting a revision in its reserve potential of iron ore and has written to the Indian Bureau of Mines for a reassessment.
A source said on condition of anonymity said that “The iron ore reserves of the company are expected to at least double from the current 206 million tonnes once the reassessment is complete and that will lead to sharp revision in its market cap.”
Mr Chandra further added that “We are also looking at diversification into other mining activities overseas, spread across assets such as gold, diamond and coal, besides looking at assets in other mineral assets in the country, but that will only happen after we consolidate our position in iron ore.”
(Sourced from www.dnaindia.com)
