In view of the acute shortage and rising prices of iron ore, the Odisha Sponge Iron Manufacturers’ Association (OSIMA) has urged the government of the Indian state of Odisha to invoke the ‘right of pre-emption’ to give preference to the supply of the raw material to steel mills located in the state, a memorandum submitted by the association to the Odisha government said on Tuesday, June 8.
The association demanded that the state government should invoke the right to pre-emption under Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules 2016 that will enable the granting of preference to steel mills located in Odisha to sources of iron ore from mines in the state, and that will reduce shipments of the raw material outside the state.
“There is an urgent need to reinstate pre-emption rights of iron ore for state-based end-use plants and to curtail the rampant diversion and export of precious iron ore outside Odisha, ensuring sustainable supply of usable ore for end-use plants based in the state, safeguarding the livelihood of people in the state,” the association’s communication said.