Captive status unlikely for Tata's chromite mine

Panel to soon recommend extension of seven mines

Tata Steel may have to settle with non-captive status for its Sukinda chromite ore mine as an inter-departmental government panel here is not keen to change the status of the lease.

Non-captive status for the Tata Steel mine can spell good news for major ferro chrome producers in the state that are battling acute chrome ore deficit. Tata Steel that was previously selling chrome ore to these units, is understood to have requested grant of captive status for its chrome ore mine. Due to indecisiveness over its lease status, Tata Steel was operating its mine at around 20 per cent capacity.

Asked if the panel would change the status of Tata Steel's mine from non-captive to 'captive', Deepak Mohanty, director (mines) said, "The inter-departmental panel today considered only cases of non-captive mines and this includes Tata Steel's Sukinda chromite ore mine."

It may be noted that during the grant of the second renewal order for Tata Steel's chromite mine in 1997, the state government had changed the status of the lease from 'captive' to 'non-captive', allowing merchant sale of ore.

However, after the Supreme Court order pertaining to illegal mining in May 2014, the government in December last year, had issued express order for the chromite mine, considering its status as captive lease. Jindal Stainless Ltd (JSL) is understood to have filed a petition in the Revision Authority under Union mines ministry against the state government's express order, arguing that this was in violation of its own policy resolution issued in October 2012.

Last Monday, a delegation of ferro chrome makers under the banner of Indian Chamber of Commerce (ICC) called on the state chief secretary G C Pati. They demanded extension of chromite mines, including the one held by Tata Steel, till March 31, 2020.

As per the provisions of the amended Mines and Minerals (Development & Regulation) MMDR Act, 2015, the validity of captive leases would be extended till 2030 and those of non-captive leases till 2020.

Apart from Tata Steel's Sukinda chromite mine, the panel headed by development commissioner U N Behera considered cases of another chromite mine held by B C Mohanty & Sons and six other iron and manganese ore mines- R B Das, Tarini Miners, TP Mohanty, Geeta Rani Mohanty, Mala Ray and Gandhamardhan Sponge Iron.

In case of Mala Ray Mines, additional information is needed to be furnished by the department of mines and forest & environment.

The cases of the rest seven mines are likely to be recommended for extension by the committee in two to three days.

"Of the seven mines, three cases are either original leases or in stage of first renewal. The validity of such leases can be extended by 50 years as per the provisions of MMDR Act, 2015. The recommendation for extension will be made by the inter-departmental committee. The proceedings of the committee are expected to be known in 2-3 days", said Mohanty.

The state government has so far extended the validity of 29 leases- 21 captive and the balance non-captive mines. Out of these 29 leases, 25 are iron and manganese ore mines. Supplementary lease deeds have been inked for 20 mines. The government has collected Rs 893 crore from these leases by way of stamp duty charges, Mohanty said.

The lease deeds have been executed for mines owned by Tata Steel, Rungta Mines, Odisha Manganese & Minerals Ltd (OMM) and Aryan Mining & Trading Corporation Ltd (AMTC) to name a few.