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Field was crowded even before POSCO’s entry

Staff Reporter

BHUBANESWAR: Even before the South Korean steel major POSCO put forward its interests on the Khandadhar mines in Orissa’s Sundargarh district for its proposed 12 million tonne per annum steel plant near the port town of Paradip, the iron ore deposit was a hot property for a host of mining and industrial houses.

As many as 169 individuals and organisations submitted 252 applications for securing either prospecting licence or mining licence of the Khandadhar deposits, Steel and Mines Minister Padmanabha Behera informed the State Assembly on Tuesday. In a written reply to a query raised by Congress member Lalatendu Bidyadhar Mohapatra, Mr. Behera said the government rejected 49 applications before recommending prospective licence for POSCO to the Centre.

The State government recently recommended to the Centre to grant prospective licence to POSCO for 62 sq km of the Khandadhar mines area. However, the decision instantly triggered controversies as State-run Kudermukh Iron Ore Company Limited (KIOCL) raised objections saying the same mines area was committed to it earlier. The company had spent nearly Rs. 2 crores on that area for survey since 2002. Khandadhar was one of the three prospective sites in which POSCO was interested. The other two sites were Thakurani and Upper Melang Toly. According to sources, the 62 sq km area had a deposit of some 180 million tonnes to 200 million tonnes of iron ore. POSCO wanted 600 million tonnes of ore for its proposed facility. According to the mining plan of POSCO, the company intended to invest Rs. 1,300 crores for Khandadhar mining development and Rs. 275 crores on infrastructure.

Many who showed interest for prospecting licence had already signed MoU with the government for putting up steel mills. They included Mesco Kalinga Steel Limited, Neepaz Metalics Limited, Jindal Steel and Power Limited, Bhusan Limited and Monet Ispat Limited.

There were surprise entrants on the list too. While 99 individuals were interested to take up mining activities at Khandadhar, the Bhubaneswar Club Limited, a recreation club of the capital city, also applied for licence.

While KIOCL challenged the decision, public protests were building against the move.

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