Odisha weighs legal option to auction Niyamgiri mine

Sequel to SC's refusal last year to reopen tribal sabhas' rejection of state mining corporation plan

In a perhaps final attempt to revive bauxite mining atop the ecologically fragile Niyamgiri hills, the Odisha government is exploring the possibility of putting these mines for auction. The contentious deposit is no longer under the leasehold of its Odisha Mining Corporation (OMC).

The bauxite-laden hills, straddling Rayagada and Kalahandi districts, are estimated to have 75 million tonnes of reserves. OMC had earlier lost the bid to mine Niyamgiri, with the local Dongaria tribes unanimously voting against the plan. Referendums were held under Supreme Court's directive in 12 villages in the two districts in July-August 2013. Local tribals nixed the plan.

That dashed global mining major Vedanta's hope to source bauxite from the mines to feed its alumina refinery at the foothills. Then, the Union environment ministry red-flagged the mining plan after tribals asserted their community and religious rights over the entire Niyamgiri range.

Any step to revive mining on Niyamgiri is fraught with risk, given the tribal angst and their entrenched opposition to the project.

"We are aware of the situation on the ground. Hence, we have sought the views of our Advocate General on whether it would be feasible to auction the Niyamgiri mine. After getting the legal view, we will take a call," said a senior Odisha government official in the know.

In February last year, OMC made an abortive bid to open the Niyamgiri mine by filing an interlocutory application with the Supreme Court. OMC pleaded that the apex court reconsiders the mining project, claiming that the Forest Rights Act and its Rules do not require any consent from gram sabhas (village councils) for use of forest land if the government decides that the rights of the people have been settled.

Senior SC counsel C A Sundaram had contended for the government that the 'palli sabhas' went beyond their mandaTE by deciding against mining in the hills. An SC bench headed by Ranjan Gogoi had refused in May 2016 to entertain the petition.

The new state government move is believed to have brightened the chances for Vedanta. A source said, "Vedanta has still not abandoned hope on Niyamgiri. It is keen to bid if the mine is offered for auction." A Vedanta official refused to comment.

Bhala Chandra Sarangi, advisor to the mining-opposed Niyamgiri Suraksha Samiti, says a move to auction Niyamgiri is not legally tenable. "Unless the Government of India amends the Forest Rights Act, the mine cannot be auctioned, as the resource cannot be put to non-forest use. More, the tribals have voted against the plan and the Supreme Court has quashed OMC's petition.''

The Supreme Court's judgement of 2013 ordered that the 12 gram sabhas of the Dongaria Kondh, Kutia Kandha and other tribal communities would decide if they held any religious and other rights over the Niyamgiri hills and if the mining of bauxite in the Lanjigarh mines below the peak of the hill would affect their religious rights.