New Projects of OMC

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.

Own Projects:
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

1.JV BETWEEN OMC & RTMD:

Brief description of the project

As per the directive of the Govt., Odisha Mining Corporation Limited signed an Agreement with Rio Tinto Mineral Development (RTMD) on dt. 24.2.1995 & a JV Company was incorporated to develop Gandhamardan & Malangtoli Mining Leases.

Present Status

Due to very low progress of the project & as per the advice of the GoO, OMC terminated the JV Agreement made between OMC & RTMD on dt. 4.7.2015.

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.

Present status

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.

Present status

As per the directive of the Govt. of Odisha, OMC terminated the JV Agreement between OMC & M/s Hindalco on dt. 5.10.2015.

1. Kalinga Coal Mining Pvt. Ltd. (KCMPL)

Brief description of the project

Joint Venture Agreement signed on 29.12.2003 between Odisha Mining Corporation Ltd. and Sainik Mining and Allied Services Ltd. (SMASL) to develop Utkal-D coal block having a coal reserve of 145 MT in Angul district. A JV Company namely Kalinga Coal Mining Pvt. Ltd. (KCMPL) was formed. As per the directive of Govt. of Odisha, the JV Agreement has been terminated by OMC Ltd. on 27.09.2012.

Present status

As per the MoC, GoI letter dated 26.12.2014, OMC has sent all available data regarding valuation / computation of compensation payable to the prior allottee / JV Company for Utkal-D coal-block.

 

2. Nuagaon Coal Company Ltd. (NCCL) :

Brief description of the project

The Ministry of Coal, GoI had allotted Nuagaon-Telisahi coal block having a coal reserve of 733.83 MT in Angul district on 2.8.2006 in favour of OMC & Andhra Pradesh Mineral Development Corporation Ltd. (APMDC) on 50:50 sharing basis. A JV Company namely Nuagaon Coal Company Ltd. (NCCL) was formed on 11.05.2011.

Present status

As per the MoC, GoI letter dtd. 22.09.2015, OMC has sent all available data regarding valuation / computation of compensation payable to the prior allottee / JV Company for Nuagaon-Telisahi coal-block.

 

3. Mandakini–B Coal Corporation Ltd. (MBCCL) :

Brief description of the project

The Ministry of Coal, GoI had allotted Mandakini–B coal block having a coal reserve of 1200 MT in favour of OMC Ltd, Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation & Tamil Nadu Electricity Board on equal sharing basis for power generation on dt. 25.07.2007. A JV Company namely Mandakini–B Coal Corporation Ltd. (MBCCL) was formed.

Present status

As per the MoC, GoI letter dtd. 22.09.2015, OMC has sent all available data regarding valuation / computation of compensation payable to the prior allottee / JV Company for Mandakini-B coal-block.

 

4. Baitarni-West Coal Project :

Brief description of the project

The Ministry of Coal, GoI has allotted Baitarni-West coal block having a coal reserve of 602 MT with a production capacity of 15 MTPA in favour of OMC Ltd for “sale of coal” on dt. 29.09.2016.

Present status

Land acquisition for this coal project is being undertaken through CBA (A&D) Act, 1957. Steps are being taken for obtaining Statutory Clearances & other pre-mining activities. MDO selection for this project is under progress. Coal production from this Coal Project is expected to commence during the FY 2023-24.

 

 

OWN PROJECTS (MECH)

a. 2.5 MTPA PROJECT AT DAITARI

In order to cater to the rising demand of iron ore by the state-based industries, OMC has decided to enhance its Iron Ore production from its mines at Daitari, Gandhamardan & Kurmitar. The proposed new Ore Handling Plant with mechanised Wagon Loading system at Daitari is of 2.5 MTPA capacities at a project cost of about Rs. 800 crore. For the same Odisha Mining Corporation (OMC) Ltd. has already signed an agreement with M/s L&T, Chennai on dtd. 31.10.2013. Basing on the proposed design of L&T, OMC applied to the APCCF for obtaining the Forest Clearance of the required Forest land for construction of the plant on dtd. 15.4.2014. The Forest Clearance is yet to be obtained from the Ministry of Environment & Forest, Govt. of India. After obtaining FC, the construction work will start.

b.8.5 MTPA PROJECT AT GANDHAMARDAN-B ML

Techno-Economic Feasibility report for setting up of a 8.5 MTPA project at Gandhamardan has already been prepared by MECON, Ranchi. The Project Approval Committee (PAC), Govt. of Odisha has already approved the project at an estimated cost of Rs. 1348.47 crore to be financed through debt equity in the ratio 2:1, on dtd.16.08.2016. The Ore Characterisation work has already been completed. The Survey & Soil Investigation work will start after obtaining FC of Gandhamardan-B ML area, after which action will be taken for preparation of tender document for selection of a Contractor.

c.6 MTPA PROJECT AT KURMITAR IRON ORE MINES

The draft project report for 6 MTPA project at Kurmitar has been prepared by M/s Engineers India Ltd. (EIL) . The same is under deliberation. Action will be taken for approval of the project by the PAC,GoO and preparation of tender document for selection of a Contractor, soon.

6 MTPA BAUXITE PROJECT AT KODINGAMALI

OMC Ltd. has also decided to diversify its business activities for Bauxite mining. OMC has engaged M/s EIL for preparation of DFR for Kodingamali Bauxite mines. Mining Plan for Kodingamali Bauxite mines has already been approved by IBM. Production from this mines has already started from Jan’18. OMC is under the process of finalisation of contract for Mechanical Production & Mechanical Evacuation from this mines.

OMC already operates a Chrome Ore Beneficiation Plant (COBP) at its South Kaliapani lease in the district of Jajpur of 1.5lakh ton capacity/annum. Encouraged by its performance OMC decided to go for another COBP of the same capacity and thus awarded the work to MBE-CMT. Kolkata. But the project could not be completed in the scheduled time due to poor performance of the agency for which the contract made with the contractor MBE-CMT has been terminated. OMC is under the process completing the balance portion of the project through some other agencies. It is expected to complete the project by the end of 2018-19.

As a part of its R&D activities, Project Section has already initiated action for recovery of Chromite values from the tailing of its Chrome Ore Beneficiation Plant presently under operation at South Kaliapani. The Pilot Plant study is under progress at the laboratory of National Metallurgical Laboratory (NML), Jamshedpur. After completion of this study, necessary action shall be taken up for commercialisation of the proposed scheme by NML. It is expected that the project would be helpful to minimise the wastes.

The contractor for construction of the tailing pond has been selected. M/s Iron Triangle (formerly Backbone Enterprises) is the selected contractor. However, the site construction work will start after obtaining modification to EC from MoEF, GoI. MECON is the consultant for this project.