The Supreme Court-appointed Central Empowered Committee (CEC) investigating into alleged illegal mining activities has asked mining companies operating in Goa to explain violations of rules, even as miners brace themselves for the impact of a continuing ban on mining activities in the state.
“The CEC sought our views on four issues including placement of dumps outside lease boundaries, contiguous nature of some mines, transfer of leases and the Supreme Court’s interpretation of the buffer zone issue, in its meeting with the mining association members on Wednesday,” a member of the Goa Mineral Ore Exporters Association (GMOEA) said.
The Goa miners have been asked to explain why contiguous leases have not been combined though Rule 38 of Mineral Concession Rules (MCR) 1960 required it. The Shah Commission had observed that many contiguous leases are operating in the state as a single mine without the approval of an amalgamated lease. To this, the miners argue that the Rule is recommendatory in nature and not mandatory.
The Shah Commission which is probing illegal mining cases across the country has also pointed out encroachment – dumping of overburden outside lease areas. Miners, however, argue dumping outside lease was done “in the interest of mineral conservation” owing to the small size of Goan mineral concessions.
The member, head of a large iron ore mining company in the state, also added that the delay in the resumption of mining activities has taken a toll on the Rs 16,000-crore local mining industry. The SC had imposed a blanket ban on mining in Goa in October after a report of Justice Shah Commission pointed out large-scale illegal mining between 2005 and 2008 and the consequent loss of Rs 35,000 crore to the exchequer.
Goa produces 43 Million Tonne (MT) iron ore annually, alone accounting for 21% of India’s overall output of the key steel making raw material. Goa exports its entire iron ore production to China, Japan and Europe. “There has been no loss to the exchequer. The Shah Commission’s calculation of the Rs 35,000 crore figure is erroneous. It is based on wrong interpretation of facts, reading of Google Maps and faulty survey done using handheld Global Positioning System (GPS) devices,” P K Mukherjee, Managing Director (MD) of Goa’s largest miner Sesa Goa said.
Shah commission also said that the distance of leases from nearest wildlife sanctuary were recorded wrongly to escape from the regulation of buffer zone that mandates a 10 kilometer distance as “shock absorber” for conservation efforts. Miners argue that upto 75% of mining in the state does not attract any provisions of the Forest Conservation Act. Around 2.5% of Goa’s total land area is covered in mining. Of this, only 17% falls in forest area.