A month after obtaining renewal for its Surda mine in Jharkhand, Central government-run Hindustan Copper Ltd is still struggling to reopen the asset. The reason: a dispute with the mine operator, Indian Resources Ltd (IRL).

Sources in the company told BusinessLine that IRL, an Australian company, had not resumed mining. “We had asked the operator in writing to reopen the Surda mine, but they have not resumed operations,” said a senior official, requesting anonymity.

The mine is closed since September 2014 for absence of lease renewal as well as environmental clearance. Sources said the company got both permissions in March.

IRL said restarting the mine is dependent on resolution of its claims for the closure period. The mine operator said it has been negotiating with Hind Copper for revised terms for the reopening and future operations of the mine.

“It could not and would not recommence mining until its claims for losses during the work stoppage and other older claims were meaning fully resolved,” it said recently.

IRL said its claims (as on March 31) exceeded ₹42 crore. However, it said Hind Copper was ready to concede ₹10 crore.

“Hind Copper has agreed to pay some of IRL claims to enable mining to recommence and has recognised that IRL will pursue the balance of the claims through arbitration and have recourse to getting the August 2013 arbitration award executed,” the contract mine operator said.

Meanwhile, IRL and its directors are facing criminal and civil actions for civil unrest at Surda, non-payment of statutory dues and bounced cheques.

Non-release of funds during the closure period to IRL and workers caused unrest at the mine site. IRL has also removed all its senior officers from the Surda mine on safety concerns and requested Hind Copper to take control of the mine.

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