Kolkata: The sponge iron industry is facing an acute shortage of key raw material iron ore, the Sponge Iron Manufacturers Association (SIMA) said Wednesday. SIMA has urged the Centre to ramp up its production and despatches.
The industry body also said after the auction of iron ore mines by the government of Odisha – the largest producer of iron ore – there has been a serious disruption in supplies.
SIMA said the new lessees have either not started mining operations or are doing it in a minuscule manner. This has led to a supply crunch and rise in prices of iron ore.
Regarding non-auctioned mines, SIMA said that excluding the captive mines of Tata Steel and SAIL, proportionate despatch of iron ore is not taking place.
The association said if supplies of iron ore are not increased, many units will have to close down, dealing a blow to a large number of workers.