Odisha Mining Activity greatly affected due to COVID-19; 21 mines interrupted

With the COVID-19 spreading at faster rate in the country, GoI had extended the statutory permits of mines for smooth transition. In spite of this, several mines in Odisha are facing delays of resumption.

Highlights

The operations of 21 mines have been disrupted completely. The delay in resumption of merchant mines in the state is to affect demand-supply mismatch greatly. Most of the small-scale steel plants, pellet makers and sponge iron units are dependent on the merchant ore market for raw materials. These mines mainly include manganese, iron ore and chromite.

Odisha Resources

The state is rich in Limestone, Manganese ore, iron ore, chromite, bauxite, Dolomite, graphite, etc. According to Economic Survey, Odisha is the major supplier of raw materials in the country. Mining contributes 10% of income of the state. It holds 96% of Chromite and 25% of coal reserves of India. After Mines and Minerals Development and regulation act, 2015, Odisha was at the forefront in auctioning new mineral blocks.

Therefore, disruption of mining activities in the state will hit the economy badly.

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