Orissa Minerals Development Company Ltd Share Price

History of Orissa Minerals Development Company Ltd

Orissa Minerals Development Company Limited (OMDC) was incorporated on August 16, 1918. The Company pioneered as the oldest iron ore mining companies in India. The Company engages in mining and producing iron ore and manganese ore. They also produce sponge iron. Their mines are located around Barbil in Keonjhar district of Orissa. The Company is a subsidiary of Eastern Investments Limited. OMDC was operating six Iron Ore and Manganese Ore mining leases at Barbil in the district of Keonjhar, Odisha. Out of which, three leases, namely Dalki Manganese Mines, Kolha-Roida Iron & Manganese mines, Thakurani Iron & Manganese Mines are in the name of Bharat Process and Mechanical Engineers' Ltd. (BPMEL), which were being operated by OMDC under Power of Attorney. The other three mines Belkundi Ir ...on & Manganese Mines, Bagiaburu Iron Mines and Bhadrasahi Iron & Manganese Mines are in the name of OMDC. It has a joint venture in the name and style of East India Minerals Ltd (EIML) with stake of 26%. Initially, the company was under the Bird Group of companies in 1980. The Bird Group of Companies was nationalized by the Government of India. Consequent upon such nationalization of the Undertaking, the shares held by the said Company in twenty one companies were transferred in the name of the President of India. After the company came under the Ministry of Steel, Government of India, the Government extended financial support to the company in the Development of Mines, Clearing outstanding dues, Creating facilities for sizing iron ore and Replacement of old/ worn out equipment and providing new equipment. In the year 1992, the company set up a joint venture company, namely East India Minerals Ltd for production of sponge grade iron ore. From September 1999, they started commercial production. During the financial years 1994-95, 1995-96 and 1996-97 the company was able to achieve marginal profits. Consequent to recession in Iron and Steel Industry the position deteriorated from 1997-98 since the demand of its products declined sharply. With the recessionary trend in the steel industry having been over since 2003 onwards, the company's position improved and they had started making significant amount of profit after tax. In June 2004, as a part of diversification, the company set up a 100 TPD Sponge Iron Plant and the plant started making commercial production. They entered into the venture of direct export of iron ore fines from the year 2005-06. During the year 2009-10, the restructuring scheme for the Bird Group of Companies as approved by the Ministry of Steel Government of India and also the Union Cabinet was implemented with effect from March 19, 2010. Thus, the group has transformed from a government managed company to a government company. As per the scheme Eastern Investments Ltd, another company under the group, in pursuit of making OMDC as their subsidiary in due compliance of the terms of the approved scheme acquired requisite number of shares of OMDC, major from the President of India on share swap basis and balance from LICI on direct payment basis. As of March 19, 2010, Eastern Investments Ltd held 50.01% interest in the company. Thus, OMDC became a subsidiary company of Eastern Investments Ltd. As Eastern Investments Ltd was converted to a government company consequent to their preferential allotment of equivalent number of shares in the name of the President of India, OMDC as subsidiary of Eastern Investments Ltd also attained the status of a government company. As of March 31, 2010, the company's mining lease area aggregates to 4365.262 hectares covering six mining leases in Barbil, district Keonjhar inclusive of three leasehold areas totaling 2068.272 hectares in the name of Bharat Process & Mechanical Engineers Ltd (BPMEL). The equity shares of the company were listed on the National Stock Exchange Ltd with effect from September 29, 2010. The Company was accorded the status of Schedule 'B' Central Public Sector Enterprise (CPSE) with effect from 19th March, 2010 by Department of Public Enterprises (DPE) in consultation with Ministry of Steel, Government of India. In accordance with the Cabinet decision dated 10.09.2009, 51% shareholding, (i.e. 7,36,638 shares) of Government of India in Eastern Investments Limited (EIL) was transferred to Rashtriya Ispat Nigam Limited (RINL). Thus RINL became the holding company of EIL, and its subsidiaries OMDC and BSLC also were made subsidiaries of RINL w.e.f. 05.01.2011. Brahmani Coal Block was surrendered to Ministry of Coal (MoC) in 2022. In 2022-23, the company achieved significant progress bringing the mines into operation. It received extension of mining lease period for Bagiaburu, Belkundi and Bhadrasahi mines. Further, the clearance of Hon'ble Supreme Court was received for resumption of mining operations in these mines. Mining operation in Bagiaburu mines started in December, 2023. OMDC is in possession of three mines namely Belkundi Iron and Manganese Mines, Bagiaburu Iron Mines and Bhadrasai Iron and Manganese Mine at Barbil in the district of Keonjhar, Odissa. Presently out of the three OMDC mines, Bagiaburu Iron mine is in operation. The other two mines of OMDC are inoperative due to non-availability of Forest and Environment clearance. The Company is in process of getting the required clearances.