SC ruling on deemed mining extension to hit output: industry

The recent Supreme Court ruling on deemed extension of iron ore mines is likely to impact iron ore production badly as many mines are currently operating under the deemed extension approval route beyond their first renewals.
"The apex court ruling on deemed mining extension has far reaching implications. Since many iron ore mines are operating under deemed extension beyond their first renewals, mining is likely to be hit," Federation of Indian Mineral Industries (Fimi) vice-president Basant Poddar told PTI today.
In a recent ruling relating to Goa iron ore mining, the Supreme Court had said that there cannot be a deemed renewal of lease after 2007 of the existing lease deeds emanating from 1962 onwards.

All mining activities under the deemed extension clause after the end of first renewal period of 20 years were illegal, the ruling said.
This ruling bears significance as many mines in other key producing states like Odisha will have to halt operations as they are operating under deemed extension clause beyond first renewal.
While around 10 mines in Odisha are operating under second renewal, 12 are under third renewal and two under fourth renewal as of now.

According to industry sources, halting of iron ore mining in Odisha will badly impact the steel industry, which is already facing shortage of the key raw material following the mining ban in Goa and lower production from Karnataka.

Referring to this issue, the Goa Mineral Ore Exporters Association said the ruling can severely impact ore availability.
"This can spell a major blow to the iron ore mining industry," Goa Mineral Ore Exporters Association secretary Glenn Kalavampara said.