Indian state-owned mining corporation Orissa Mining Corporation (OMC) is to reserve 70 percent of the iron ore and 80 percent of the chromite ore it mines for local steel and direct-reduced iron producing companies based in the state of Orissa, following an official request made by the government of Orissa at a meeting held in the Orissa Secretariat under the chairmanship of state finance minister Prafulla Chandra Ghadei.
The meeting was held after certain industries expressed displeasure over the state government's inability to ensure adequate supplies of raw materials to them, even as it exported the bulk of its mineral output to other states in India and also overseas.
Meanwhile, OMC has been allowed to export 70 percent of its output of iron ore fines, as the state's steel industry does not have the required technology for the use of fines.
Presently, the iron ore requirement of the state is around 20 million mt per annum and OMC meets 15 to 20 percent of this demand, Business Standard noted.