 "Verdict not to hit Odisha mines")
The Supreme Court (SC) judgment for cancellation of 49 iron ore leases in Karnataka on charges of rule violations might not have any bearing on the fate of Odisha's mines, also in the dock for several rule violations, as the nature of crimes are different, said a state government official.
"The SC verdict to cancel leases of Category C mines (which have mined 10 per cent beyond lease area) was justified as they were carrying on operation without any forest and environmental clearance. In Odisha, the situation may not arise as the government has already taken so many steps," said Deepak Mohanty, director of mines.
About 50, of the 186 iron and manganese ore mines in the state are now operating. Many had halted their operation due to lack of statutory clearances when the government clamped down on them following media exposures on illegal mining activities.
The miners and the state government are awaiting the report of Shah Commission, appointed to inquire into the illegal mining of iron ore and manganese.
Of all the working iron ore mines in the state, 10 have valid leases, while the rest are working under a deemed extension provision. The provision allows miners to operate even after lease expiry, pending approval of renewal.
Despite the closure of many mines, iron ore output of the state was above 60 million tonnes till 2010-11. It has been declining since the second half of 2012.
Though the state government had put a cap on iron ore output at 52 million tonnes in areas having high production potential, it never got a chance to implement the order, as production suffered at many large mines due to several restrictions imposed by the government, poor demand and other factors.
"I do not think the total output would have gone beyond 50 million tonnes for 2012-13," Mohanty said.
In October 2012, the state government came out with an executive order, which restricted miners awaiting second and subsequent lease renewals to limit production to captive need. The order affected mining output of the Aditya Birla Group-managed Essel Mining and small miners, who did not have any end-use industry.
"The SC verdict to cancel leases of Category C mines (which have mined 10 per cent beyond lease area) was justified as they were carrying on operation without any forest and environmental clearance. In Odisha, the situation may not arise as the government has already taken so many steps," said Deepak Mohanty, director of mines.
About 50, of the 186 iron and manganese ore mines in the state are now operating. Many had halted their operation due to lack of statutory clearances when the government clamped down on them following media exposures on illegal mining activities.
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"The SC verdict made it clear that there will not be any lease cancellation in Odisha, as no miners went beyond the leased area here to excavate the minerals. Whatever irregularities have been there in Odisha were related to excess raising of ore and these have been regularised after payment of royalty," said Prabodh Mohanty, spokesperson for the East Zone Miners Association (EZMA).
The miners and the state government are awaiting the report of Shah Commission, appointed to inquire into the illegal mining of iron ore and manganese.
Of all the working iron ore mines in the state, 10 have valid leases, while the rest are working under a deemed extension provision. The provision allows miners to operate even after lease expiry, pending approval of renewal.
Despite the closure of many mines, iron ore output of the state was above 60 million tonnes till 2010-11. It has been declining since the second half of 2012.
Though the state government had put a cap on iron ore output at 52 million tonnes in areas having high production potential, it never got a chance to implement the order, as production suffered at many large mines due to several restrictions imposed by the government, poor demand and other factors.
"I do not think the total output would have gone beyond 50 million tonnes for 2012-13," Mohanty said.
In October 2012, the state government came out with an executive order, which restricted miners awaiting second and subsequent lease renewals to limit production to captive need. The order affected mining output of the Aditya Birla Group-managed Essel Mining and small miners, who did not have any end-use industry.