"While renewing mining lease of certain lessees, the state government will ensure that they have captive use in the country," Steel and Mines Secretray Rajesh Verma told PTI, adding that mineral from the existing mines is used in captive purpose and strictly not for trading.
A resolution to this effect, which got the nod of Chief Minister Naveen Patnaik, mentioned that though the state government had executed more than 50 MoUs for setting up steel plants and alumina refineries in Odisha, majority of these projects are grappling with issues about availability of raw material.
The Vedanta Aluminium Ltd (VAL) which had set up a 1 mtpa alumina refinery at Lanjigarh in Kalahandi district, had meanwhile informed the state government that it would be forced to shut down the plant due to scarcity of bauxite.
Stating that mineral resources are finite and non-renewable, the state said it has been giving stress on the value addition for effective means for achievement of the objective of conserving them (mineral resources).
"Hence, second and subsequent renewals cannot be claimed as a matter of right. There must be sufficient reasons to say that such renewal is in the interest of mineral development..." the resolution said.
As per the new resolution, the lessee must have properly prospected the mine to know its actual reserve by making reasonable investment in scientific prospecting and subsurface exploration to the geologically visualised depths of ore bottoming. MORE