Posco's mining trail still bumpy despite SC breather

It is not an all-clear for Posco India despite the SC setting aside the July 2010 order of the Odisha High Court, that had quashed the state government's recommendation for a PL in favour of the company

It is not an all-clear for Posco India despite the Supreme Court (SC) setting aside the July 2010 order of the Odisha High Court, that had quashed the state government’s recommendation for a PL (prospecting license) in favour of the company.

Protests by Pauri Bhuiya, a primitive tribal group of the Khandadhar hills, concerns of mining drying up water sources, political opposition by the Bharatiya Janata Party (BJP) and also left extremism pose a formidable challenge, before Posco can lay hands on the coveted Khandadhar mines, considered a ‘mining jackpot’.

“The verdict will not open the gate for Posco. It was just a competition between companies to get a recommendation from the Odisha government for allotment of mine leases. The real problem will begin when the decision is taken for mining at Khandadhar,” said Prafulla Samantara, President, Lok Janshakti Abhiyaan.

Drawing parallels with the Niyamgiri case, he said, “There are tribals and primitive tribals at Khandadhar. The Forest Rights Act must be implemented and gram sabhas will also come into picture.”

“Posco’s struggle to win mining rights is far from over. I don’t think the SC has given complete clearance to the company. It has only asked the Centre to take a decision on grant of mining rights to Posco after considering all objections. Before allowing mining at the site, the forest rights of tribals will have to be considered and settled,” said Biswajit Mohanty, member of the National Board of Wildlife.

Pointing out that the Khandadhar region has a rich biodiversity, Mohanty said, “The water flow will be disrupted if mining is allowed there. Besides, allowing mining on a huge scale will upset the region’s overall ecological balance.”

Similar views came from Congress leader and noted lawyer Narsingha Mishra. “The hurdles will persist for Posco. The SC has now left it to the Centre, which will take the views of the Odisha government, company authorities and other stakeholders, including those opposed to mining operations at Khandadhar. It is going to be a time-consuming affair. The matter will again revert to the apex court,” he said.

Mishra, however, said the shift in mining policies by the central and state government is likely to have a bearing on grant of PL to Posco. “In a way, the Centre and the state government have shifted the mining policies. Both are now of the view that mines should be allocated via auctions. Recently, the state government also came out with a circular that all balance mineral-bearing areas have to be reserved in favour of its public sector unit — Odisha Mining Corporation”, he added.

Jual Oram, tribal leader and BJP vice-president, pledged opposition to the Posco project. “We are opposing the company. The state and Centre should refrain from supporting any company, including Posco, for allotting any mines in Khandadhar,” he said.

State Congress chief Niranjan Patnaik said, “We are not opposed to the allotting of mines to Posco. All the mines in the state should be kept under state-run companies.”

Odisha Chief Minister Naveen Patnaik said, “We are yet to receive the order of the SC. Once we get it, we will follow it up.”