Odisha aims to reopen 18 more mines by July-end

The state mines department has set an internal timeline to restart operation at 18 more mines, which were closed by the Supreme Court order, pending second and third renewal of their lease terms, by the end of July next.

These mines were operating under deemed lease extension clause of the Mineral Concession Rules, 1960, before being shut down.

Though the apex court had ordered closure of 26 iron ore/manganese mines, the state government has recently allowed restart of operation at eight mines through an express order.

These included four leases of Tata Steel- Bamebari, Katamati, Joda East and Joda West, three mines- Bolani, Barsuan and Kalta held by Steel Authority of India Ltd (SAIL) and the Kurmitar Pahar lease of state run Odisha Mining Corporation (OMC).

"We will issue orders for resuming operations at the balance 18 mines by the end of July. Once the order is issued, the lessee has to obtain pending regulatory approvals and clearances, if any, within three months. Apart from statutory clearances, the lessees have to achieve complete diversion of forest land and pay NPV (net present values) dues in lieu of forest land diverted for mining activity", said an official at mines department.

Miners working under the provisions of 'deemed extension' in Odisha were in for a shocker when the Supreme Court (SC) in an interim order on May 16 called for suspending operation till their mining leases are renewed.

The order was applicable to 26 mines in the state awaiting second and subsequent renewal. And the timeline stipulated by the top court for the state government to clear pending renewal applications is six months.

"As an interim measure, these 26 leases operating as second and subsequent renewals without any express orders of renewal passed by the state government will not be allowed to operate by the state government until express orders are passed in terms of Section 8 (3) of the Mines and Minerals (Development and Regulation) Act, 1957 and we also direct that all renewal applications under Section 8 (3) of the Mines and Minerals (Development and Regulation) Act, 1957 will be considered and disposed of by the state", read an interim order of the apex court.

The SC had directed the state government to treat the lease renewal applications of those which were operating their mines for captive purpose on a priority basis. The top court called for completion of the entire process of consideration and disposal of renewal applications within six months of its interim order.