With 97 leases set to lapse, Centre asks states for mine re-auction roadmap

Deadline for plan submission is Sept 2017; Odisha tops with 32 mines due to expire by March 2020

Worried over the status of mineral leases lapsing in 2020, the Union mines ministry has urged states to submit action plans for their re-auction by September this year.

A total of 97 mining leases are expiring in 2020. Before being put up for auctions, the leases need to be explored up to G1 or G2 level. The Action Plan for 2020 by states would concentrate on the roadmap and modalities for auctions of these leases. Committees have been formed at the state level with representatives from the Indian Bureau of Mines (IBM), Geological Survey of India (GSI), Mineral Exploration Corporation Ltd (MECL) and the state directorates of geology to prepare the roadmap for auctioning them.

Among the 97 lapsing mines, Odisha tops the list with 32 mines due to expire by March 2020.

"We have taken stock of the exploration status of the leases lapsing by 2020. A six monthly reporting system is in place to track the activities on exploration carried by the leaseholders," said a state government official.

As per the provisions of the amended Mines and Minerals (Development & Regulation) Act, the validity of existing non-merchant mines have been extended till March 31, 2020 and those of captive leases till 2030. Iron ore blocks going for auctions need to be explored at least up to G2 level as per the policy of the Government of India. Most of the mining leases expiring in 2020 have not been explored to that level. There is an exploratory obligation on holder of mining lease as per laid down conditions in the approved mining plan under Mineral Concession Development Rules (MCDR), 1988.

Major mining leases lapsing in Odisha by March 2020 include the ones held by Rungta Mines, KJS Ahluwalia, Serajuddin & Co, Kaypee Enterprises, Kalinga Mining Corporation, Mid East Integrated Steel Ltd, KN Ram, RB Das, Tarini Prasad Mohanty, KC Pradhan and Lal Traders.

Steel industries, especially the ones operating without captive ores, are worried over the repercussions if the auctions are not held promptly after the leases expire.

In Odisha, 16 non-captive iron ore leases are lapsing in 2020 and this is expected to shut off iron ore production of 66 million tonne per annum (mtpa). The state is the biggest iron ore producer in the country which contributed more than 100 million tonnes (mt) out of the pan-India output of 192 mt in 2016-17.

"Though there are a number of virgin iron ore blocks in Odisha that can be offered for auctions, most of them are not explored up to the G2 level. Incomplete exploration and the lack of a roadmap yet to auction the lapsing leases will hurt iron ore supplies to the steel units", said a senior official with a steel company.

Next to Odisha is Tamil Nadu where 28 mines, most of them non-functional are lapsing in 2020. Madhya Pradesh has 12 such leases followed by 11 in Gujarat, five in Andhra Pradesh, four in Rajasthan and two in Maharashtra.