Mining dept completes hearing on excess mining

The mining department has completed hearing of all miners in the Joda sector who were imposed penalty for raising excess ore beyond the mining plan approved by the Indian Bureau of Mines (IBM).

"The process of hearing is over for the Joda mining circle and it will now be initiated for the Koira circle. Then, demand notices will be despatched to the miners," said a source at the steel & mines department.

The state steel & mines department had imposed a total penalty of Rs 65,492.73 crore on 104 errant lessees found guilty of extracting excess ore during 2001-10, a move contested by around 20 miners in the revision authority under Union mines ministry.

The penalty was imposed on miners like Essel Mining, Tata Steel, Mid-East Integrated Steel Ltd, Indrani Patnaik, Rungta Mines and Serajuddin & Company to name a few. Out of 104 lessees, 44 had were operating in the Joda circle.

These miners had raised minerals beyond their prescribed limit specified in the mining plan approved by (IBM) during 2006 to 2010. The government had invoked Section 21 (5) of Mines and Minerals (Development & Regulation) MMDR Act-1957 for recovering cost of production. "The penalty demand on excess ore production was termed 'unjustified' by the Society for Geoscientists & Allied Technologists (SGAT), a body dedicated to promotion of mineral development.

"As such demand raised on the lessees to pay the price of ore raised in excess of quantity approved in the mining plan, environment clearance and consent letter retrospectively is totally unjustified more so when permission had been accorded for despatch of such ores from the lease areas and royalty collected," SGAT had stated in a note submitted to the MB Shah Commission probing into illegal mining.

But the government justified its belated action of recovering money saying that as IBM did not take cognizance of the plea of the state to take action against the miners, the government finally came up with this decision after receiving report from the accountant general on why the miners should not be asked to repay the money.