Tata Steel has halted chromite mine operation at Sukinda as its lease validity expired earlier this month. Even though the company had the option to operate the mine invoking the 'deemed extension' clause mentioned in the mineral concession rules (MCR), it could not do so due to unavailability of forest clearances.
"Tata Steel has applied for a temporary working permit to the Ministry of Environment and Forest (MoEF) to operate the mine. It has submitted the amount towards NPV (Net Present Value) of trees as required by law to avail the forest clearances”, said U C Jena, deputy director of mines of Jajpur Road mines circle, under whose jurisdiction Sukinda area falls.
The Sukinda chromite mine covers 406 hectares area, including 106 acres of forest land. The lease validity, which was valid for 20 years, expired on January 11. The mine has the capacity to produce 2.4 million tonnes (mt) of chrome ore every year.
A company source said, they hope to get the temporary working permit within two weeks and hence, the mines operation should start by the second week of February under deemed extension clause.
The mines lease renewal process normally takes much longer time, sometimes over ten years due to lengthy bureaucratic process. Therefore the MCR provides that if a mining company has applied for renewal of lease deed one year before the expiry date, then they will be allowed to operate the mine under deemed extension clause even if their lease is not renewed in time.
