Odisha govt order paves way for reopening of 26 mines

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

The executive order has paved the way for reopening of these mines, subject to fulfilment of conditions stipulated by the government. The Supreme Court's interim order in May last year had triggered temporary closure of these 26 mines of which 18 mines are yet to restart operations since then. "We have issued separate orders in respect of the 26 mines that includes mostly iron and manganese ore leases and 3-4 limestone and dolomite mines. 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 (net present value) dues to commence operations", said a top official at steel & mines department.

"The state government's order has been guided by the new mining regulation- Mines and Minerals (Development & Regulation) MMDR Amendment Act, 2015 which has allowed extension of captive leases till 2030 and those of non-captive mines till 2020", he added. The closure of these key iron and manganese ore mines had led iron ore output in the state nosedive by 39 per cent to 47.35 million tonne in 2014-15 from 77.84 million tonne in the year-ago fiscal.

Once these mines resume operations, it would add 32 million tonne iron ore output capacity annually. The orders would benefit six iron and manganese ore mines of Tata Steel - Khandabandh, Manmora, Tiringa Pahad, Katamati, Joda West, Joda East and Bamebari. Leases of other miners- Aryan Mining & Trading Corporation Pvt Ltd, Bonai Industrial Company Ltd, Rungta Mines, Fee-grade & Company Ltd, Orissa Manganese & Minerals Ltd, KJS Ahluwalia, Kaypee Enterprises, Kalinga Mining Corporation, KN Ram & Company, Vivek Lall and Bargarh Cements have also been extended.