In a bid to facilitate a long-term linkage of iron ore and chrome ore for the industries, the State Government has asked the Odisha Mining Corporation (OMC) to submit a draft agreement proposal in this regard as early as possible.
With the Department of Steel & Mines (DoSM) acting upon the suggestions of the Ministerial Committee for supply of ores to the State-based industries, the DoSM has written to the OMC CMD to send the draft agreement for taking necessary action.
The DoSM has outlined the general principles for both iron ore and chrome ore, saying the long-term linkage should be for five years and the quantity to be assured under the linkage should be determined by a committee headed by the Secretary of Industries.
The other members of the committee are Director of Mines and IPICOl CMD while the OMC CMD would be its member-convener.
The Government has said that while deciding the linkage quantity, production from captive mines, if any, should be taken into consideration and the balance requirement be committed under the long-term linkage.
The DoSM has issued detailed guidelines, which include 50 per cent of saleable stocks would be replaced under the linkage for MoU-signed steel plants while the remaining 50 saleable stocks would be sold through national e-auction to be conducted monthly/bimonthly/quarterly. The weighted average price derived from the national e-auction would be the long-term linkage price for the appropriate grades.
The steel plant which would be established by the OMC can also participate in the e-auction to be held at the national level.
Within the MoU-based steel plants, blast furnace-based integrated plants would be given priority over others. The steel plants with which MoUs would be signed would be given preference over those yet to be commissioned.
Similarly, for chrome-ore linkage, detailed guidelines have been issued, which stipulate 70 per cent of the saleable stock would be available for long-term linkage to State-based end-users and the remaining 30 per cent of saleable stock would be sold through national e-auction. The weighted average price derived from the e-auction would be the linkage price for appropriate grades.
State-based end-user plants having long-term linkage can also take part in the e-auction and te OMC would ensure requirement of chrome ore supply to all the State-based industries, said the order.