In view of weakening iron ore prices, an official representing the Odisha Iron Ore Exporters’ Association (OIOEA) in Odisha state in India said that the association in a communication to the Paradip Port Trust (PPT) has sought that the 38 vacant lots under control of the port authorities should be allocated to miners for use as stockyards through the auction route.
The association has also sought renegotiations with the port authorities and the Odisha state government for reduction in rentals for all other port land currently used as stockyards by miners as export realizations have been falling against the backdrop of ongoing soft international prices of iron ore fines, the official said.
According to the OIOEA, availability of stockyards at competitive rates both within the port area and outside is critical for miners to be competitive in the falling international price environment as iron ore production is rising steadily in Odisha. Shortage of stockyards at competitive rates risk causing miners to cut down on production, the official added.
The OIOEA official pointed out that Odisha recorded the highest growth in production in the country during the financial year 2015-16 at 81 million mt compared to 47 million mt in the previous fiscal year, and in the current fiscal year production is expected to hit 100 million mt.