Nalco to surrender 2,100 ha excess mining land

Move to help save money in terms of payment of lease

National Aluminium Co Ltd (Nalco) expects the proposal to surrender part of its mining land in the Panchpatmali bauxite deposit area will soon be cleared by the state mines department.

Nalco intends to surrender 2,087 hectares (ha) of its 3,404 ha mining lease area, where no bauxite deposit was found after exploration. The proposal was sent two years ago and the state mines department has recently asked the company to submit details of payment made towards the net present value (NPV) of the trees on this patch of land at the time of forest land diversion.

"We hope the proposal will get through soon, probably ahead of the renewal of lease for the rest of the area,” said a company official.

The return of the excess land will help the aluminium maker save money in terms of payment of lease and NPV in case of forest land diversion.

The company, in 2002, had surrendered 1,288 ha as it did not find bauxite deposit in those areas, out of original 4,692 ha land allotted to it. After recent surrender proposal of 2,087 ha, Nalco will have 1,315 ha area in its possession, including 1,294 ha forest land.

"Surrendering of unused land relieves us from carrying the responsibility of the said area. Since we are operating in a Naxal-infested zone, we cannot always monitor activities of each and every individual in this hilly site,” said the official, who did not want to be named.

During 2009, Maoists raided the Panchpatmali mines and disrupted the mining operation there for several days.

The lease agreement for the Panchpatmali bauxite mine in the north and central block expired in November 2012. The mine, estimated to have 150 million tonnes bauxite left, is currently running under temporary work permit granted by the Union ministry of environment and forest.