The Centre has asked Odisha government to expedite exploration of iron ore mines as the production of the raw material may decline considerably and may lead to crisis after expiry of leases in 2020.
The Mines Ministry "stressed on accelerating the pace of exploration, especially mines producing iron ore in Odisha, where iron ore production may reduce significantly resulting in a mineral crisis after expiry of such leases in 2020," an official said.
The ministry also advised all states, including Odisha, to encourage the lessees of these mines to take up detailed exploration and to develop phased final mine closure strategies and plans, so that blocks on expiry of the lease period may immediately be put up for auction, the official added.
Around 240 mines where leases are due to expire in March 2020 and the resources available in them have already been identified, the official said.
"Indian Bureau of Mines has also evaluated and submitted a report to the Ministry of Mines on the resources that will be exploited till March 2020 and the area will remain to be explored to G2 and G1 and for exploitation later," the official added.
As many as 21 mining leases have already been auctioned so far with a cumulative resource value of around Rs 94,000 crore.
Disclaimer: No Business Standard Journalist was involved in creation of this content
