Closure of Orissa mines hit iron ore supply to Paradip port

BHUBANESWAR - The closure and suspension of work in more than 50 iron ore mines in Orissa over the past month has hit supplies to Paradip port for export, a port official said.

Paradip port, in Orissa’s Jagatsinghpur district, some 100 km from here, received 200 rakes of iron ore last month against 218 rakes in October from various mining areas. Each rake has a capacity of carrying 3,300 to 3,500 tonnes of the ore.

“There has been a reduction in the number of incoming rakes,” the port’s deputy chairman Biplav Kumar told IANS Friday.

Orissa is one of the largest mineral-bearing states in India — 16.92 percent of the mineral reserves of the country are estimated to be in the state.

In 2008-09, the state produced about 70 million tonnes of iron ore — around one-third of the country’s total production. At least 13.67 million tonnes of the ore were exported from the Paradip port.

The state has approximately 600 mines and over 2,400 ore traders.

Although production in Orissa has come down due to the crackdown on illegal mining, a government official said it was a temporary setback and would not affect the state’s production target.

The state government started an investigation in July following allegations that some mines were operating without licences.

Last month, it ordered the suspension of work in 128 mines including about 50 iron ore mines and suspension of licences of more than 400 traders of different ores after they failed to produce documents to show that their mining activities were legal.

The drop in the number of rakes carrying iron ore is mainly due to the suspension and closure of mines, a government official said.