Fate of 11 iron ore mines in Odisha hangs in balance

The committee had recently recommended extension of 26 mines, including 22 iron and manganese ore mines

The fate of 11 non-captive iron and manganese ore mines in the state hangs in the balance as an inter-departmental committee is yet to recommend their cases for extension.

The committee, headed by development commissioner U N Behera, had recently recommended extension of 26 mines, including 22 iron and manganese ore mines. Based on this recommendation, the state government had passed necessary orders.

However, the reopening of 11 more mines is under a cloud since they lack the statutory clearances. These include three mines held by Orissa Manganese & Minerals Ltd (OMM) Ltd, four of RP Sao and the rest owned by Hargovind Pandya.

"The status of 11 mines was presented before the inter-departmental committee. All these mines lack statutory clearances and are in a non-working state. The committee is yet to take any decision on recommending their cases for extension," said director (mines) Deepak Mohanty after the meeting of the committee.

Last week, the state government issued necessary orders for extending lease validity of 26 mines, eight captive and the rest non-captive.

The restart of these key mines that includes 22 iron and manganese ore mines could add up to around 40 million tonne of iron ore output annually. The state government can also rake in around Rs 500 crore by executing supplementary lease deeds for these 26 mines.

Six iron and manganese ore mines of Tata Steel - Khandabandh, Manmora, Tiringa Pahad, Katamati, Joda West, Joda East and Bamebari are poised to restart operations. Leases of other miners- Aryan Mining & Trading Corporation Pvt Ltd, Bonai Industrial Company Ltd, Rungta Mines, Fee-grade & Company Ltd, OMM Ltd KJS Ahluwalia, Kaypee Enterprises, Kalinga Mining Corporation, KN Ram & Company, Vivek Lall and Bargarh Cements have also been extended.

Last week, the state steel & mines department issued orders for extending the lease validity of 26 mines, including eight captive and the remaining 18 non-captive leases.

The reopening of these mines is subject to certain conditions stipulated by the state government.

The government has allowed three months' time to the lessees to execute supplementary lease deeds. Additionally, they have to obtain all clearances and pay NPV dues to commence operations. All such lessees have to comply with the Supreme Court order to be pronounced in the final disposal of the cases relating to these mines as well as pending orders on recommendations of the MB Shah Commission of enquiry and the central empowered committee (CEC) on illegal mining in the state.

Further, the lessees have to act in compliance with the relevant order of the Odisha High Court (HC) in cases pertaining to the 26 mines. The HC had directed the state government to extend the operations of these leases on or before April 27. The next hearing on the case is scheduled on April 29.