Odisha occupies an important position both in terms of mineral deposit and production. It is one of the largest mineral bearing States in India, having 16.92 per cent of the total reserves of the country. The mineral deposit is not only vast but also equally diverse.
While mining is beneficial to the economy, both in terms of its economic impact and the value to other industries of its product, it almost always has adverse environmental impacts and eventually health impacts.
The MMDR 2015 (Amendment) has allowed appropriation of more than 329 existing mining leases for commodities like iron ore, chromite and manganese, which had their mining rights granted 50 years ago. The State Governments including Odisha are excited that this recycling through auctions allows them to extract larger revenue share from the sale of ores.
Odisha, the country’s biggest iron ore producer, started process to auction mines before their leases expire in March 2020. steel manufacturers, sponge iron ore producers, pellet manufacturers and pig iron makers along with leading merchant miners are set to bid aggressively for these blocks.
The socioeconomic condition will be impacted due to the mining in Odisha. As the mines are located in the undeveloped interior areas of Odisha, so the Government most preapare and come with a progressive roadmap and action plan for socio economic development of the community, which can be made mandatory for the prospective mine owners. The forest-dwelling adivasis, indigenous tribes, in all the mining zones of Odisha, are the directly affected stakeholders. Environmental, social problems along with mining-related risks create conflicts between miners and local communities. Mining has adverse environmental impacts and eventually adverse impacts on soil, water and vegetation of that area, leading to impact on human health.
Another effect is the degradation of land. The mining land should be properly reclaimed for renewed vegetation and wildlife while in previous mining lands can even be used for farming. Proper soil and water treatment must be needed for that area by which pollution rate becomes reduced.
In the meantime the AITUC-affiliated trade unions organised demonstration at Barbil, to press for job security. They demanded that the new ‘owners’ after the auction must not squeeze job opportunities. The workers now involved in raising iron ore should continue. Workers are apprehensive that new ‘parties’, which emerge successful in the auctions, might attempt to reduce the existing workforce.
On the other hand, the situation of scarcity of resources and rush by company owners to win the bids at any cost is unlikely to benefit India’s minerals sector in the long run. Consumers are likely to bear the brunt of increased cost of domestic metals production. Expected manipulation of the regulatory processes by the miners could adversely impact employment, employee health and safety, environment and community management processes and above all India’s needs for mineral conservation. In this context sustainable mining would be a significant challenge.