The Odisha government has issued a stern warning to iron ore mining companies and steel manufacturers against the alleged manipulation of ore grades, signalling stricter regulatory oversight to safeguard state revenue and ensure transparency in mineral transactions. The move comes amid concerns that deliberate misclassification of iron ore quality could lead to lower royalty payments and distort the mineral value chain.
The Steel and Mines Department has directed all lessees and end-users to adhere strictly to the prescribed procedures for ore sampling, testing and grade declaration. Authorities have cautioned that any discrepancy between the declared grade and the actual quality of iron ore would invite stringent action under the provisions of the Mines and Minerals (Development and Regulation) Act and the applicable mining rules.
To strengthen compliance, the state plans to intensify inspections at mines, stockyards and steel plants while enhancing monitoring of ore movement and laboratory testing. The objective is to establish greater accountability across the supply chain and prevent any practices that could result in revenue leakage or unfair commercial advantage.
Odisha is India’s largest producer of iron ore and plays a pivotal role in supplying raw material to the domestic steel industry. The government’s latest directive underscores its commitment to ensuring scientific mineral assessment, transparent royalty collection and sustainable management of the state’s mineral resources while maintaining a level playing field for all stakeholders in the sector.
