Goa notifies mining rules, clears 85 leases

Days after revoking the earlier suspension of mining operations, the government of Goa has opened the minerals exploration sector, clearing 85 licences, including the ones of Sesa Sterlite. About half of dozen have started exploration.

‘The Goa Grant of Mining Leases Policy’ allows mineral exploration for even leaseholders that had violated substantially provisions of the state or Centre’s laws. In the draft guidelines, the government had said violators may be denied grant of renewal under the new provisions. The notification classifies such leases under category-III, similar to the draft guidelines.

“Such mining companies which have already been issued showcause notices or where a hearing is in progress for various violations and upon the decision thereof by the state government will be considered and given time for payment of stamp duty and other charges leviable and payable,” said the notification.

WIDENING HORIZONS

• The government of Goa has opened the minerals exploration sector, clearing 85 licences, including the ones of Sesa Sterlite
• ‘The Goa Grant of Mining Leases Policy’ allows mineral exploration for even leaseholders that had violated substantially provisions of the state or Centre’s laws
• The notification classifies such leases under category-III, similar to the draft guidelines

It added the government would consider imposing charges prospectively and retrospectively on recovery, etc. This is in addition to the royalty, through appropriate legislative measures, including creation and payment of 10 per cent of the sale proceeds to the Goa Mineral Permanent Fund.

Grant of leases will be only after compliance with existing provisions, including a report from the Indian Bureau of Mines when the government feels the need. Miners with no or minimal violation of any provision/ condition have been allowed to get permission to start exploration.

According to sources, Sesa Sterlite has already received state clearance and has begun lease execution activities in a fourth of its 21 operational mines.

Mining companies have urged the government to formulate a comprehensive strategy, to allow long-term investment. “Steps in bits and pieces would not work at all. The state government will have to set long-term goals, keeping large investment and employment in mind. Also, Goa’s iron ore output is capped at 20 million tonnes, which means at least 80 mt of dumps are required in an area around 1,600 ha. Since dumping is not allowed outside the mine area and a cumulative mine area exists in around 8,000 ha, the mine area will be filled within five years. Such issues need to be addressed,” said Haresh Melwani, chief executive at HL Nathurmal & Co, a miner and exporter.

According to informed sources, the government has cleared 85 cases but other clearances needed to be taken, too. Ambar Timblo, managing director of Fomento Resources, one of the largest mining companies in Goa, said: “We are awaiting environment clearances. Commencement of mineral excavation will take at least two months from the date of all clearances.”