Due to a dispute over iron ore transportation fees, truck drivers servicing Indian miner Keonjhar Company located in the eastern Indian state of Orissa have started to launch strike action as of August 16.
The truck drivers are seeking higher fees for iron ore transportation from the Joda and Barbil mines to Paradip port which is 300 km southeast. The drivers are seeking to raise their fee from INR 2,200-2,500/mt ($48.48-55/mt) to INR 2,700-2,800/mt ($59.5-61.7/mt). In addition, the drivers also want only locally-registered vehicles to be allowed to transport iron ore from Orissa to nearby ports. Market insiders fear that, if the issue is not resolved, the export volume of iron ore from the state of Orissa may be reduced.