Thakurani mines may reopen by May end

Odisha govt says Sarada Mines has already applied for environment clearance to MoEF

Thakurani iron ore mines, operated by Sarada Mines Private Ltd, is expected to receive the permission of the Odisha government to restart operation around last week of May after it gets the environment clearance (EC) from the Union Ministry of Environment and Forest (MoEF).

“The company has already applied for the EC to MoEF before the expiry of clearance. Though we have heard that the ministry has agreed to renew the clearance, the letter has not reached the Odisha government. Once the EC letter reaches here, the state directorate of mines will soon allow the company to operate as it has got all other necessary approvals,” said a government official with direct knowledge of the matter. The office of the deputy director of mines (DDM) of Joda mining circle had issued a closure notice to the lease holders of Sarada Mines on April 1 this year, asking them to suspend mining operation immediately as the EC had expired on March 31, 2014.

As per current mining rules, a miner needs EC, forest clearance, approved mining plan from Indian Bureau of Mines (IBM) and consent to operate certificate from state pollution control board to operate a mine. Absence of any one of the clearance bars a miner to carry out any mining activity.

The MoEF is expected to send the EC letter to the state government after the term of the model code of conduct comes to end on May 16. After the letter is received by the Odisha government, it would take at least a couple of days to issue notification for restart of operation of the mine. So it is expected the mine will be operational around last week of May, the sources added.

Thakurani mines block B is spread over an area of 947 hectare (ha), out of which 347 ha is used for mining purpose. It had got approvals for production of 15 million tonne per annum run of mineral (iron ore including waste materials) from MoEF and Indian Bureau of Mines (IBM) in 2008.

The halting of operation at Thakurani mines is closely linked with pellet and steel production capacity of Jindal Steel and Power Ltd (JSPL). The company procures the entire produce of iron ore fines from Sarada Mines for its 5 mtpa pellet plant at Barbil. The steelmaker also buys high grade lumpy ore from the miner to feed its 3 mtpa steel unit at Raigarh in Chhattisgarh as per a long term supply contract entered with Sarada Mines.