CEC recommends SC to allow opening of Category B mines

The R&R Plans have been prepared and approved by CEC for 51 mining leases comprising of 28 Category A and 23 Category B mining leases

The Supreme Court-appointed Central Empowered Committee (CEC), has recommended the resumption of mining in all Category A mining leases.

The CEC has also recommended that the court may consider permitting the resumption of operations in Category B mining leases subject to fulfillment of certain conditions. Only 8 mining leases out of the 18 Category A mining leases, have resumed mining in Karnataka with a combined capacity of 3.67 million tonnes per annum.

In its Sept  3, 2012, order, the SC had permitted the 18 mining leases to resume mining subject to implementation of reclamation and rehabilitation (R&R) plans. Till now, these eight mines have put out one million tonne iron ore, which is yet to be auctioned by the Monitoring Committee.

In its latest report dated February 15, and submitted to the apex court, the CEC said, “In compliance of this court’s order dated September 28, 2012, the lessees will be required to pay, if not already so done, compensation for the area under illegal mining pits, illegal over burden dumps, roads, offices among others; undertake to pay the additional compensatory amounts, if held liable, guarantee money for implementation of the reclamation and rehabilitation plans.”

The leaseholders should also deposit 15 per cent of the sale proceeds of the existing iron ore sold by the committee. Before starting mining operations, the implementation of the R&R plans for the areas  under illegal mining pits, illegal over burden dumps among others will be completed — nearing completion to the satisfaction of the Monitoring Committee.

“The CEC/Monitoring Committee may be authorised to remove and sell through e-auction the sub grade iron ore available in the existing over burden dumps in and around the lease areas subject to the condition that such removal and sale is not likely to have significant adverse impact on the existing tree growth / vegetation and or stability of the over burden dumps,” the CEC said.

Further, it said the Monitoring Committee may be authorised to retain the entire sale proceeds in respect of the dumps located outside the sanctioned and presently alid lease areas for the purpose of transfer to the special purpose vehicle for the implementation of the Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ). The forest bench of the Supreme Court is likely take up the matter for hearing tomorrow (February 20, 2013).

In its order dated September 28, 2012, the Supreme Court directed the Category B mining leases to pay compensation of Rs 5 crore per hectare of area under illegal mining pits and Rs 1 crore per hectare of area under illegal over burden dumps, roads and offices among others.

The lessees have been directed to file an undertaking before the CEC for payment of additional amounts if held liable on the basis of the final determination of the amount of the compensatory payments to be made by the leaseholders and also to deposit guarantee money for the implementation of the R&R Plans. The R&R Plans have been prepared and approved by CEC for 51 mining leases comprising of 28 Category A and 23 Category B mining leases. The lessees of 10 mining leases have not provided the relevant information required for the preparation of the R&R Plans. The R&R plans for five Category A mining leases and 10 Category B mining leases are in the process of being finalised / approved, the CEC said in its report.