Sponge iron units in Chhattisgarh hit by ore supply woes

RAIPUR - Production in some 50 sponge iron units in Chhattisgarh has been halted after private miners in neighbouring Orissa stopped supplying iron ore about a month ago, an industry official said Monday.

“Chhattisgarh has 105 sponge iron units having an annual output of 8 million tonnes, but production has been stopped completely at nearly 50 percent of the units because Orissa-based private contractors have stopped supply since March 4,” Anil Nachrani, president of the Chhattisgarh Sponge Iron Manufacturers Association, told IANS.

He said the units needed about 12 million tonnes of iron ore annually, of which 9 million tonnes were supplied by private miners from Orissa’s Keonjhar district. The National Mineral Development Corporation provided the remaining 3 million tonnes from its Bailadila mines in Chhattisgarh.

Nachrani said the iron ore supply had come to a halt after the Orissa government last month began a crackdown on alleged illegal mining and pilferage of iron ore at several points in the district.

The supply woes have hit several listed companies, including Monnet, Ispat and Sharda Energy.

Manufacturers say more units will either suspend or cut production heavily if supply was not restored.

Chhattisgarh-based units produce about 30-35 percent of India’s annual sponge iron output.