Bhubaneswar, March 11: Indian Bureau of Mines (IBM) has been directed by the Union Ministry of Mines to look into an alleged case of artificial low supply of iron ore and cartelisation by some Stare-based miners to domestic pellet manufacturers.
According to sources, IBM has been asked to conduct an investigation on the basis of a February 25 complaint by the Pellet Manufacturers Association of India (PMAI), a lobby group.
The bureau is expected to submit its report within a fortnight to the government. Iron ore pellets are utilized for steel production.
India’s iron ore production for FY16 is estimated at 135 million tonne compared with 129 million tonne in FY15. “We have asked the Indian Bureau of Mines to examine the matter and issue necessary directions to the Odisha government and private miners in order to resolve the problem,” said Union Mines Secretary Balvinder Kumar.
The pellet industry has argued that merchant miners are producing iron ore below par which may have severe financial implications on the industry.
Odisha’s pellet industry has a production capacity of 30 million tonnes per year.
