OMC Plans Pellet Plant to Boost Value Addition from Iron Ore Mining

OMC (the Odisha Mining Corporation), in the next giant leap toward value addition of iron ore operations, is setting up a pellet plant to take advantage of the increasing output of iron ore. The public sector miner, operating under the Odisha government, has initiated the setting up of the facility to commence by 2026.

According to sources from within OMC, the corporation has hired Mecon (Metallurgical Consultants), a government undertaking consultancy, to develop a detailed techno-economic feasibility report for the proposed plant. A special project team has already been constituted within OMC to fast-track the development.

The whole process is part of the Odisha government’s initiative to increase downstream integration in the state mining sector for better resource utilization, employment generation, and maximum revenue. The pellet plant enables OMC to convert lower-grade iron ore fines to value-added products such as iron ore pellets, which are highly sought after by the steel industry.

That plan follows a record-breaking year for the OMC. In 2024–25, the corporation presented iron ore production aiming for 35.7 million metric tonnes (mt) with its highest-ever annual records from all its mines. The new financial year kicked off with OMC further pushing ahead by producing 8.66 million mt of iron ore in the April-June quarter of FY 2025-26.

While precise figures for the investment of the pellet plant have yet to be revealed, the project will substantially upgrade OMC’s downstream potential and market position. Furthermore, it fits into the wider perspective of India boosting the domestic processing of raw materials and curbing import reliance for steel inputs.

With adequate mineral reserves and an excellent run in production, OMC’s initiation of pellet production could change its road to growth and cement Odisha’s fate as one of the major contributors to the mining and metals sector in India.