Odisha Mining Corp may move Odisha HC over Kurmitar lease case

State controlled miner Odisha Mining Corporation (OMC) is readying to move the Odisha High Court (HC) to contest the state government’s decision to suspend operations of its Kurmitar Pahar iron ore and manganese lease.

“As per a government order, the Kurmitar Pahar lease is under suspension. But we are going to move the Odisha High Court against the order,” said OMC chairman Pradipta K Mohapatra.

A senior officer at the state steel & mines department said, “OMC had initially gone to the Supreme Court challenging the government’s suspension order. Now, it has to withdraw its appeal from the apex court to move the Odisha HC.”

The Kurmitar Pahar lease held by OMC was awaiting second renewal. The lease was operating under an express order passed by the state government under section 8 (3) of Mines and Minerals (Development & Regulation) Act, 1957. This was after an interim order of the Supreme Court in May this year wherein the apex court had disallowed operations of all leases awaiting second and subsequent renewal until the state government came out with an express order to enable their functioning. The top court’s order had affected operations of 26 iron ore and manganese mines.

Complying with the court order, the state government in June passed express orders in respect of eight mines — four held by Tata Steel, three mines of Steel Authority of India (SAIL) — Bolani, Barsuan and Kalta and the Kurmitar Pahar lease of Odisha Mining Corporation (OMC).

The express order came with a rider — miners have to obtain all the necessary statutory clearances within three months. The state government allowed two extensions to the miners to get the clearances. While SAIL obtained the approvals within the stipulated time, other miners were unable to get the clearances.

The state government had finally asked miners to conform to the November 15 timeline for clearances since it marked six months from the interim order of the Supreme Court.

As four mines held by Tata Steel and one of OMC failed to conform to the deadline, the government suspended their operations.

Later Tata Steel had contested the state government’s move in the Odisha HC. Earlier this month, the court in its interim order had allowed operations of the four mines till January 28, 2015. The government then permitted the four mines to restart operations. The government’s express orders, however, were pending for the balance 18 mines. The mines include the ones held by Tata Steel, KJS Ahluwalia, KN Ram, Kalinga Mining Corporation, Kaypee Enterprises, Mideast Integrated Steel, Aryan Mining & Trading Corporation Ltd, Bonai Industrial Company Ltd, B I Company Ltd, Feegrade & Company Ltd, OMM Pvt Ltd, state run Odisha Mining Corporation (OMC) and Rungta Mines Ltd.