IBM seeks details on 24 mines awaiting lease renewal

State says IBM report on 'mineral development' not binging

The Indian Bureau of Mines (IBM) has sought from the Odisha government the details of 24 mining leases, which are awaiting extension of the validity period of the leases, before giving its recommendation whether the leases should be renewed in the interest of 'mineral development'.

The communication from IBM is in contrast with October 2012 executive order of the state government, which asserted that the state is empowered to take a decision about 'mineral development' while processing renewal application.

Citing Rule 24A, clause 3 of the Mineral Concession Rule (MCR), 1960, the IBM said, it is the duty of the state government to seek a report from the Controller General of IBM about 'mineral development' while processing the application for second and subsequent lease renewal.

In its earlier order, the state government had stated that while authorising second and subsequent renewal of mining lease, it is mandated under section 8 of the Mines and Mineral Development and Regulation (MMDR) Act, 1957, to satisfy itself fully that such renewal would be in the interest of mineral development.

Quoting the MMDR Act provisions, the state government said, it will limit area of a mines lease holder if the total deposit exceeds 30 year captive requirement. Similarly, it said, miners not associated with any mineral development industry would not be granted the permission for lease renewal and all such areas would be granted in favour of state-run Odisha Mining Corporation (OMC).

Many mine owners had objected to this resolution of the state government saying that decision of lease renewal on the basis of mineral development is the prerogative of IBM, not of the state government. While admitting that report of the IBM on 'mineral development' by a lessee is pre-requisite for lease renewal, the state mines department officials said, such recommendations cannot influence government decision on renewal.

"Seeking report from IBM is a step which cannot be done away with. But the IBM recommendation is not binding upon us. We have a policy decision and it cannot be changed," said Deepak Mohanty, state director of mines.

If the state government sticks to its October decision, then the 24 miners might lose total or partial lease area allotted to them. These include those of Tata Steel, Steel Authority of India (SAIL), Rungta Sons, and Odisha Manganese and Mineral Ltd, a subsidiary of Adhunik Metaliks.