Long Term Linkage (LTL) Policy of Minerals 2023


Odisha is the largest Iron ore producing state in India having more than 55% share in Iron ore production and almost 100% of chrome ore is also being produced in the State of Odisha only. The pro-active initiative of the State Government for Industrial Facilitation has attracted both Domestic and Foreign Companies for setting up Mineral based Industries in the State.

Many companies have come forward for installation of mineral based plant (e.g. Integrated Steel Plant, Pellet plants, Aluminium plants, Downstream and ancillary units, etc.) within the State of Odisha. Many of the plants have already started production and many more are in the process of getting the requisite clearances.

The State Government have laid down the procedure to provide Long Term Linkage (LTL) for Iron and Chromite Ore and Bauxite to the MoU signed with Steel Plant companies (including Stainless Steel/ Sponge Iron/ Pellet manufacturing/ Ferro-Alloy companies) and other Metal companies (Alumina/ Aluminium), of Odisha through Odisha Mining Corporation Ltd. for sustained supply of raw materials over a period of five years extendable to further period(s) of five years.

General Principle

The long-term linkage should be for 5 years with provision for annual review based on the performance of the linkage in terms of off take trends, plant capacity enhancements, regularity of off take and ability to make payments on time, etc. At the end of 5 years, the contract may be renewed for eligible buyers for another 5 years as per the LTL Policy.

Iron Ore Linkage

Not less than 50% and not more than 80% of saleable stock will be placed under the Long-term Linkage. Quantities offered but not lifted by the allottees may be disposed through the National e-auction. The exact percentage of saleable stock to be earmarked for long-term linkage shall be fixed by OMC taking into account its production, the demand from the State-based end-users, and also availability of prevalent evacuation infrastructure for individual mine.

Chromite Ore Linkage

Up to 80% of the saleable stock shall be made available for long-term linkage to State-based end-user Industries. The remaining saleable stock shall be sold through National e-auction to be conducted by OMC at suitable time intervals, i.e. monthly / bi-monthly / quarterly / or as deemed fit by OMC, for the price discovery.

Bauxite Linkage

Weighted average price derived from the National e-auction shall be the long-term linkage price for the relevant grades of Bauxite ore. State-based end user plants having long-term linkage can also take part in the National e-auction. Floor price for the National e-auction may be fixed as per Rule 45 of Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 as amended from time to time or as per the notification issued by the State Govt.