Joda: With the state government announcing to auction eight iron ore and manganese blocks under Joda Mining Circle in Keonjhar district October 18, the present lease holders are apprehensive about their business prospects while thousands of workers engaged in the sector fear losing their jobs.
The lease period of these non-captive blocks would expire March 31 next year.
According to the notification— Kalinga Mining Corporation Mine at Jurudi, KN Ram Mine, Roida-2, Patnaik Mineral Pvt Ltd at Jaribahal, Jiling Essel Mining and Industries at Jurdi, Jajanga Rungta Mine, Silijoda Mines of Rungta Sons KJS Ahluwalia mines, KP Enterprises mines at Thakurani and Kalimati Sirajuddin Mine at Balada— are the iron ore blocks which would go under the hammer.
Sources said multinational companies have set their eyes on the eight mines coming under Joda Mining Circle. Representative teams of the companies including TATA Steel, JSW, Adani Group, Arcelor Mittal, TATA Steel Long Product Sponge LTD., Lloyds Steels, Rio Tinto, Vedanta Groups, STEMCOR Steel, TVS group, Jindal Steel and Power LTD. and Allied Steel Industries are known to have visited the mines, inspected the quality of the mineral ores and estimated the necessary costs.
Sources added that the mines may fetch huge sum for the government. However, the valuation of mineral ores and the permanent assets in the mines of old lease holders are yet to be estimated and the state government has made a committee for it. The committee will start its work soon.
On the other hand, the workers who are working under the existing lease holding companies are worried fearing job losses in case the new lease holders get rid of them.
Sources said the new bidders have estimated the remaining ore in the mines to be very low in quantity and hence they may want to cut down on the manual labour. In addition to that automation would just exacerbate their re-employment prospects.
As the state government has not set any particular guideline to protect the employment of the mine workers, the workers are jittery.
It may be mentioned here that interested bidders can purchase the tender documents till November 29 while December 4 is the last date for submission of the bids.
As the state government had failed to auction even a single block during 2018-19 financial year, owing mainly to legal issues, the Steel and Mines department is leaving no stone unturned to auction maximum blocks in 2019-20. Sources in the department said many top mining players of the country are expected to participate in the auction process.
Bidders who would successfully get the working mines can operate the blocks immediately after obtaining necessary statutory clearances while successful bidders of virgin area mines would have to address issues like land acquisition for development of road and other logistic infrastructure, rehabilitation and resettlement of the oustees, and other clearances.