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The Odisha high court’s recent order to allow mining operations of lapsed leases is set to augment iron ore output in the state by 35 million tonnes (mt). At least 21 mines, including 18 mines that were shut down following a Supreme Court order last year, are poised to resume operations.
“It would lead to opening of 18 iron and manganese ore mines facing shutdown following last year’s Supreme Court order. Together, these captive and non-captive mines have a production capacity of 32 mt. Moreover, there are a few other mines with necessary clearances. Reopening all these mines can add up to 35 mt iron ore output,” said a senior official with a mining company.
Hearing a petition filed by some miners on Wednesday, the high court had asked the state government to allow operations in mines shut for want of renewal of leases.
The high court also asked the state government to revise the lease deed and take steps to allow the miners to resume operations before April 29. An official at the state steel and mines department said, “We haven't got a copy of the court order yet. Upon receipt, we will take necessary steps for compliance.”
In May last year, the Supreme Court had ordered the state government to halt activities in 26 iron ore and manganese mines, operating without a valid lease after 50 years of operations. The apex court maintained the automatic renewal of leases or deemed extension after first renewal is illegal and had asked the government to expedite the renewal process within six months.
The state government had allowed operation of eight mines after the court order by passing express orders. However, similar orders were not issued for the remaining 18 mines. Meantime, the lease validity of three more mines completed 50 years and these were asked to halt operations based on the Supreme Court order. Some of the miners had moved the Odisha High Court after the state government decided in January this year to auction the leases. The next hearing on the case will be on April 29.
