Labour unions of Indian Metals and Ferro Alloys (IMFA) have urged the state government to take steps for immediate opening of Sukinda chromite mines of the company citing acute raw material scarcity in the ferrochrome plant.

 

“Currently only two of the six units of IMFA are in operation. The other units have been shut down due to closure of Sukinda mines. The current stock can cater to the need of two working units for only 10-15 days. After that those units will also go out of operation. We are concerned about salaries and future of our families,” the labour union leaders said in a letter to the chief minister.

 

The Sukinda mines of IMFA has been shut since April this year due to lack of a clearance from Odisha State Pollution Control Board (OSPCB). “Though the state pollution control board officials have inspected the mines twice in August and September, we fail to understand why there is a delay in issuing Consent to Operate certificate. We request your intervention in the matter,” the labour union leaders said in the letter. The company has three furnaces each stationed at tribal dominated Therubali (in Rayagada) and at Choudwar near Cuttack in Odisha, with an annual ferrochrome production capacity up to 275,000 tonnes.

 

The company was planning to expand its operation by adding more power generation capacity. Power costs account for upto 35 per cent of production cost of ferrochrome, used as a mix to produce stainless steel. The company has right to mine nearly five chromite mines with total estimated reserve of 21 million tonne. However, it was sourcing chrome ore primarily from its Sukinda mine, with annual raising capacity of about 300,000 tonne.

 

As per current mining rules, a miner needs EC (environment clearance), forest clearance, approved mining plan from Indian Bureau of Mines (IBM) and Consent to Operate certificate from state pollution control board to operate a mine. Absence of any one of the clearances bars a miner to carry out the mining activity.