Hindalco Industries, an Aditya Birla Group company, expects no impact on its operations due to suspension of mining at the six company-owned bauxite mines in Jharkhand. Bauxite from the said mines was supplied at Muri and Renukoot Alumina Refinery.

The company has sufficient inventory and option to source bauxite from other operating mines in the area to its alumina refineries at Muri and Renukoot, said Hindalco in a statement on Wednesday.

As per the provisions of Mining Act, the lessee is required to apply for renewal of lease one year before expiry of mining lease. The company had applied for second renewal of mining lease within the stipulated time.

As per the Act, if the approval is not received post timely application, then the lessee can continue to operate the mine under deemed renewal.

However, the Government made it mandatory for all companies operating under the first renewal to obtain the mining lease within two years from the date of notifications of the Mineral Concession (Amendment) Rules, 2014. In view of the said amendment in the MCR, deemed provisions for the second and subsequent renewal is henceforth not available, said the company. In compliance with the amendment in the Act, the Jharkhand government ordered the company to stop mining operations till the second renewal is formally granted by the state government. The company has resubmitted its request for lease renewal to the state Government on August 8. The Central government had advised the state government to consider expeditious renewal of lease, it said.

Related Topics
comment COMMENT NOW