MAC: Mines and Communities

Guerrilla attacks cost NMDC $50 million in lost production

Published by MAC on 2007-09-03

Guerrilla attacks cost NMDC $50 million in lost production

Metal Bulletin, Mumbai

3rd September 2007

Attacks on National Mineral Development Corp's Bailadila mines by Maoist guerrillas resulted in a loss of production of more than 1.6 million tonnes during 2006 and 2007, the company said. Chairman Ramesh Kumar said: “There have been serious setbacks in the Bailadila complex. The attacks disrupted the production in the Bailadila sector. The resultant loss in production was to the tune of 850,000 tonnes in the year ended March 31 2007 and about 750,000 tonnes in the current financial year”.

He went on to highlight a major setback to production caused by damage to a conveyor in Bailadila deposits 10 and 11A in October 2006, resulting in no production from October 30 to December 23.

The value of lost production was put at Rs2.05 billion ($50.1 million) over two years.

The Bailadila mines in Chhattisgarh state have huge deposits of iron ore but the region is dominated by Maoists opposed to development in the area. Mining rights in Bailadila have been granted to Essar Steel and Tata Steel, who are now proceeding with two greenfield steel plants.

They have been given mining leases to mine around 200 million tonnes of iron ore each, and Maoists have already said they will oppose the leases and associated mining activity.

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