Consistent good performance over the past few years has enabled OMC to undertake new capital intensive projects which are essential to sustain its good performance in the long run.
Joint Venture (JV) Projects:
OMC has decided to diversify its activities and has entered into sectors such as coal and bauxite mining and power generation. A number of Joint Venture Companies have been formed/ are in the process of formation.
These are projects undertaken by OMC in order to enhance the present performance level of the Company.
The details of the Joint Ventrue projects as well as Own Projects are given below:
Joint Venture (JV) Projects & Coal Project
1.A. New 1000 TPH Ore Handling Plant with 3200 TPH Mechanised Wagon Loading System including Related Railway Infrastructure for Iron Ore Mine at Daitari.
An agreement has been signed with M/s L&T, Chennai on dtd.31.10.2013 for installation of 2.5 MTPA capacity ( in addition to the present capacity) New Ore Handling Plant with Mechanised Wagon Loading System at Daitari at an estimated project cost of about Rs.800 Crore considering price escalation. OMC has already obtained stage I Forest Clearance of the required 106.016 Ha. of forest land from MoEF & CC, GoI .The construction activity shall be started after obtaining the Stage-II Forest Clearance from MoEF & CC, GoI.
1.B. 10 MTPA iron ore project at Gandhamardan mines ( MDO mode) .
Techno-Economic Feasibility Report (TEFR) for setting up of a 8.5 MTPA project with Mechanised Production and Evacuation mode was prepared by MECON, Ranchi, during July 2015. The Project Approval Committee (PAC), GoO approved the project cost of Rs.1348.47 Crore on 16.08.2016.After obtaining the Forest Clearance of the forest land during Sep’2018, the Survey, Soil Investigation, Hydrological study & Railway Study for the proposed project was conducted .Subsequently, to meet the time line set by GoO based on the recommendation of NEERI, the management of OMC has decided to execute the project on MDO mode instead of as usual EPC mode of execution. It has also been decided that the single MDO who will be awarded the work will operate all three mines i.e Hill top-B, Putulpani, Gandhamardan-A @ 10 MTPA. The design document for the said project was prepared by MECON taking the inputs of the aforesaid study reports. Basing on the design document ,preparation of tender document is under progress. The tender for selection of MDO for execution of the above said project shall be floated shortly after obtaining In-principle Approval of the Govt of Odisha . The MDO to operate the mines for 20 years including three years construction period. The selected MDO to start production from 01.09.2022.
1.C. 6.0 MTPA Kurmitar Iron Ore Mines.
6 MTPA project at Kurmitar, basing on the Detailed Feasibility Report (DFR) prepared by M/s Engineers India Limited (EIL), OMC opted for execution of the project through appointment of a Mine Developer cum Operator (MDO) after obtaining In-principle Approval of the Govt.. This selected MDO shall start production from the mines from 01.04.2021 and the contract period shall be till 25 years or till exhaustion of ore, whichever is earlier. Tender for selection of MDO was floated during March’19.The contract was awarded and Agreement was signed with MDO M/s Kurmitar Iron Ore mining Pvt Ltd on 31.10.2019.Presently the MDO is preparing the basic engineering for the project .Since the contract is over a period of 25 years,the contract value would be more than Rs.5000 Crore.
2.A. Recovery of Chromite Values from the Tailings of COB Plant.
Basing on the Pilot Plant Study result of the Chromite Tailing at NML, Jamshedpur, MECON has prepared the Detailed Project Report(DPR) for establishing a beneficiation plant to recover the chromite values from the tailing. The estimated project cost is approx. Rs.70 Crore as per the DPR. The report has been deliberated by in-house technical committee and shall be placed before Board committee on technical matter shortly for a decision on further course of action on the project.
2.B. Installation of New COB Plant.
Basing on the kind approval of the PAC, GoO the contract with the Ex-contractor M/s MBE-CMT was terminated on 4.02.2018 and fresh agreement was signed with KIOCL on dt.26.07.2018 for “Completion of Installation of Balance Portion of Work of New COBP”. The work is on progress. The scheduled time line for completion was 25.03.2020.Since the said job could not be completed within time, extension of time was granted to KIOCL till 30.11.2020 for completion of the work .
2.C. Construction of Tailing Ponds for Both the COB Plants at South Kaliapani.
In order to operate the Chrome Ore Beneficiation Plant at South Kaliapani, OMC decided to construct a tailing pond along with ETP and accordingly selected M/s Iron Triangle (formerly M/s Backbone Enterprises Ltd.) through open tender process. However due to non-availability of modification to EC, the work could not be awarded and BoD in its 420th meeting held on 27.03.2017 advised to award the work after obtaining modification to EC, from MoEF & CC, GoI , which was applied on 15.05.2015. Till date modification to EC has not been obtained. Subsequently the selected agency expressed its unwillingness to execute the project, unless there is price escalation. But the tender has no provision for price escalation.The matter was deliberated by the 432nd meeting of the BoD held on 08.07.2019. Basing on the decision taken in BoD meeting,OMC has cancelled the tender and is presently finalising the tender document for selection of an agency through open tender, with provision of price escalation/ de-escalation so that work can be started soon after obtaining modification to EC.
3.A. 6 MTPA Kodingamali Bauxite Project.
For Mechanised Production & Evacuation from the Kodingamali Bauxite Mines, OMC, though M/s Engineers India Ltd. (EIL) has prepared a Detailed Feasibility Report, after completing the required technical studies relating to this project. The draft report from EIL has been received in July’2019. The same has been deliberated twive in the meeting of technical committee of the Board and is under finalisation.
1. JV BETWEEN OMC & STERLITE INDUSTRIES (INDIA) LIMITED (SIIL):
Brief description of the project
A Joint Venture Agreement was signed between OMC and Vedanta Alumina Limited (A subsidiary of Sterlite Industries (India) Limited) on 5.10.2004 & 18.2.2009 for development of Lanjigarh bauxite Mining project.
As per the directive of the Govt. of Odisha, OMC Ltd. terminated the JV Agreement between OMC & SIIL on dt. 30.09.2015.
2. JV BETWEEN OMC & HINDALCO:
Brief description of the project
A Joint Venture Agreement was executed between OMC & Hindalco Industries Ltd. on dt. 25.10.2005 for development of Kodingamali Bauxite deposit in Koraput district for supply of bauxite to the Alumina refinery of HINDALCO at Kansarigada, Rayagada district.
As per the directive of the Govt. of Odisha, OMC terminated the JV Agreement between OMC & M/s Hindalco on dt. 5.10.2015.