The collection of penalty to the tune of Rs 8,223 crore from 72 mines of the State and immediate stoppage of as many as seven working mines of the State, including four mines in Sundargarh district, made huge impact in the State and particularly in Sundargarh district.
About 5,000 employees, engaged in different mining units of Sundargarh district alone, have lost their jobs whereas the owners of working mines have hiked the price of iron ore, which has also created panic among steel producers.
According to sources, the mine owners in operation have hiked their prices at least by Rs 500 per tonne of iron ore since Tuesday. Significantly, within a span of just 25 days, the price of size iron ore has been increased to as high as Rs 5,100 per tonne, from Rs 3,600 prevailing before 25 days. Ever since the Supreme Court made it clear that that the mine owners would have to pay the penalty latest by December 31, the mine owners of the State have been increasing the price as it has touched to as high as Rs 5,100 per tonne now.
As the demand of iron ore has picked up in past one month, the prices of iron ore has been increased by mine owners. “It is unfair. To take benefit out of this situation, the mine owners have increased the iron ore price which is exceedingly high. The State Government should immediately look into it and must check it,” said an industrialist of the district.
The price hike of iron ore, coming under the backdrop of deposit of penalty and stoppage of seven working mines, has raised many eyebrows from different quarters. "It is unfortunate that the Government has no control over mine owners, particularly in respect of hiking the price of ore due to which the price has gone up almost by 40 per cent over the previous price, soon after the penalty," said P Mohanty, an iron ore merchant of the district.
Sources said closure of as many as seven working mines has led to a sharp decrease in supply of iron ore, which has also helped the working mines raise their price.
In the Koira mining sector alone, as many as four mines like Corps Resources, National Enterprises, both at Raikala, Odisha Manganese and Mineral (OMM) at Patamunda and Essel Mining at Koira have been closed, after State Government's direction, due to nonpayment of penalties.
Apart from about 3,500 persons, who were directly employed in these four mines of the district, another about two thousand persons, who were indirectly employed, mainly in transportation activities, have suddenly turned jobless and face a livelihood crisis.