Considering the increasing demand for iron ore, the Odisha government allowed about 10 per cent hike in the production of ore from Joda and Koira circles to 57 million tonne (mn t) in 2012-13 from the previous year.
While ore output from Joda circle is set at 44 mn t, that at the Koira sector is pegged at 13 mn t. Both Joda and Koira are the two most prolific iron ore producing circles in Odisha, contributing to over 80 per cent of the total ore output.
The government allowed higher production from these circles following the demand from the industry. The hike in the output ceiling may ensure greater availability of the ore for industries, especially units within the state. The iron ore demand for local end use industries is estimated at 20 mn t per annum (mtpa).
In May 2012, the state government restricted iron ore output following concerns over rampant extraction of ore and its adverse impact on the environment.
The decision was guided by the Supreme Court order that had raised grave concern over the environmental damage caused by iron ore mining in Karnataka's Bellary region.
The maximum quantity of ore that can be extracted from Joda and Koira is recommended by an 18-member committee chaired by state chief secretary BK Patnaik to recommend.
The recommendation was to be made factoring in environmental concerns as well as carrying capacity of existing road and rail infrastructure in the two mine-rich belts.
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