Bengaluru-based Sandur Manganese and Iron Ores has suspended operations of a mine with effect from January 1 as per a directive from the forest department following expiry of the lease, the company said today.
The company was granted a 20-year lease, effective from January 1, 1994, which expired on December 31, 2013, it said in a BSE filing.
As part of the existing rules, the company had applied for renewal more than 12 months in advance, and it was accordingly entitled to continue operations under the deemed renewal provisions, Sandur said.
"However, without taking cognizance of the aforesaid deemed renewal provisions, the Forest Department has directed suspension of mining operations with effect from January 1, 2014," the company said.
"Accordingly, the company has suspended all activities in its mining leases and efforts are being made to obtain orders for resumption of operations," it added.
Shares of the company were trading at Rs 600.15 apiece, down 3.43 per cent, during the afternoon trade on the BSE.
