Jharkhand not to allow iron ore movement from SAIL’s Gua mine

The Government of Jharkhand has refused to allow iron ore movement from SAIL’s Gua mine, even though the Jharkhand High Court permitted resumption of operation at the mine early this week.

A single-member bench of the High Court asked the State Government to allow resumption of operations at Gua mines without the penalty clause. Sources told BusinessLine that though SAIL resumed mine operations, the State Government did not issue the “forwarding note” for the iron ore movement from the mine. “Instead, the State moved an appeal against the verdict in a division bench,” a SAIL source said.

The State Government had ordered stoppage of operations from September 5 for both SAIL’s Gua mine and Tata Steel’s Noamundi mine. Operations at Noamundi mine until now remain suspended.

The company, which also had moved the Ranchi High Court in relation to lease renewal issue, is awaiting a verdict. The High Court has reserved its judgment.

SAIL had challenged the penal condition placed by the Jharkhand Government before the High Court for renewal of one of its iron ore mining leases (Durgaiburu) at Gua in West Singhbhum district of the State.

In its petition, SAIL said the State Government did not have powers to ask the miner, which had been continuing with mining operations on “deemed” renewal status, to pay for the total value of the minerals extracted since the expiry of the leases.

SAIL’s lease tenure had expired in February 2009. The state-owned company also filed the application for second renewal. However, the State Government failed to execute the renewal agreement and let the public sector steelmaker continue operations at its captive mine on “deemed” renewal.

Mines and Minerals (Development and Regulations) Act, 1957, and Mineral Concession Rules, 1960, permitted such “deemed” renewals.

COMMENT NOW