Joda: Jajang iron ore mine in the Joda mining circle of Keonjhar district is set to shut down reportedly due to the depletion of mineral reserves. The company managing the mine has communicated this to the government via an official letter citing insufficient deposits. In response, transportation operations have been halted and truck owners associated with the mine have been notified. Reports suggest that other mines that had been taken on lease by the company are also under consideration for suspension. This development has left a large number of trucks idle, causing significant distress among truck owners and others involved in the iron ore transportation sector. This has sparked concerns as many fear that their livelihood will be affected. Besides, government revenue will also bear a substantial loss. Stakeholders are calling for clear policy guidelines from the state government to address these issues.
According to the Mining department, while 34 mines in the Joda circle remain operational, 56 are currently inactive due to various legal and procedural issues. Some companies have expressed their inability to pay the required premium amounts and have sought to relinquish their rights to certain mines, citing the declining demand for iron ore in the market. Jajang mine is among the auctioned mines experiencing a drop in transport activity. This decline has affected several revenue streams, including mining royalties, auction premiums, the District Mineral Foundation (DMF) fund, and payments to the National Mineral Exploration Trust (NMET). The reduced activity impacts not only local and state revenues but also the financial contributions to the Central government. An official from Jajang mine, speaking on the condition of anonymity, revealed that during the auction, they were told that the mine contained sufficient iron ores.
However, after just three years of mining, the estimated reserves have significantly decreased. As a result, the company operating the mine has written to the government, requesting its transfer. Industry insiders emphasise the need for immediate governmental intervention to stabilise the situation and minimise economic losses. Jajang iron ore mine began operations in 2020 after being auctioned at 110 per cent of the base price. Recognised as a major mine, it stands out even among industry leaders like Tata, Kasvi, and Odisha Mining Corporation (OMC). The mine produced approximately 7 lakh tonne of iron ore per month, transported using about 900 trucks daily.
However, the company has reportedly decided to shut down operations, citing insufficient mineral reserves contrary to initial claims during the auction. As a result, stakeholders were notified in advance November 29, and by November 30, both mining and transport activities were halted, with only the remaining stock being lifted. On the other hand, iron ore export to foreign countries from this mining circle has significantly declined. While exports constituted 7.83 per cent of total production during the 2023-24 fiscal, it plummeted to just 5.14 per cent in the first nine months of the current fiscal year (2024-25). This steep decline in exports has raised concerns about reduced revenue.
Also Read: Leopard found dead in Rengali reservoir
Additionally, experts fear that if such mines shut down, it could severely impact both the state-level and national steel industries. Truck owners engaged in the transportation of minerals are facing the threat of unemployment. They have urged the state government to adopt a clear mining policy to address the situation and bring stability before things go out of hand. Sushanta Kumar Barik, secretary of the Joda Truck Owners’ Association, stated that there are over 10,000 registered trucks under various vehicle owners’ associations in the Joda mining region. He noted that if large-scale mining operations are shut down, more than 50,000 people will be directly and indirectly affected.