The leases of 13 out of the 19 non-operating (mostly iron-ore) mines of the Steel Authority of India Ltd (SAIL) have lapsed. The CPSE has begun work on lease renewal and restart of operations at nine of these mines, of which seven are stuck at various levels across three states. Operations at one in Odisha began earlier this year and clearance for operationalising one Chattisgarh was received earlier in October, as per an internal note of the Steel Ministry, accessed by businessline.

According to the note, there are four mines in Jharkhand, two in Odisha and one in Tamil Nadu that are awaiting clearances across categories like environmental impact assessment report, wildlife management plans, diversion or conversion of forest land for mining, lease surrender clause, among others.

As of now, there are no direct impact on the operations of SAIL, but continuity of these mining leases are important as SAIL looks to ramp-up capacities.

“Out of 19 non-operational mines of SAIL, leases of 13 mines lapsed on March, 2022. However, no notification has been issued by the Ministry of Mines in this regard till now. Matter regarding order for extending the period of starting mining operations by SAIL on a case-to-case basis in relaxation of provisions .... are pending with the Ministry of Mines. As advised by the Ministry of Mines, the Steel Ministry directed SAIL to pursue the matter with the state governments,” the note reads.

Discussions in Jharkhand

In Jharkhand, the four mines that are awaiting clearance include Kiriburu–Megathaburu, Jhillingburu–1, Jhillingburu–2 and Topailore.

Officials aware of the discussions said, in case of operating the Kiriburu – Megathaburu mine (Lease I, II and III), a meeting between SAIL officials with the Principal Chief Conservator of Forest (Nodal) and Head of Forest Force, Ranchi, took place in September-end where discussions took place on the land-use plans, surrender plans, etc. Presently, the proposal to re-start ops is being examined by the office of Principal Chief Conservator of Forest, Jharkhand regarding compliance of Wild Life Management Plan. Post consideration, it will be forwarded to the environment department for grant of further clearances.

In case of Jhillingburu–1, SAIL roped in IIT-Kharagpur to prepare a report on dealing with concerns such as water conservation, minimising soil erosion, construction of check dams, stabilisation of overburden dumps, etc. The final draft study report was submitted in June and again in August. SAIL officials met the District Forest Officer, Saranda, in September, and post consideration at various levels will be taken ahead.

In Jhillingburu–2, re-modification of mining plans are being carried out and expedited; while for Topailore mines, an additional document dealing with “Justification for Grant of Mining Lease for Topailore Lease” is being worked-on that details the rationale behind asking for extension of the lease.

During a meeting between Union Steel Secretary and Chief Secretary, Jharkhand, it was said the hearing procedure was completed across three of the mines. SAIL also requested expediting the process of hearing on lapsing of mining leases which will help in pending extension of the lease.

Other States

In Odisha’s ML-139 mine, concerns have been raised over the in-volatile nature of the land which has led to the project being pushed back. Apparently, a supplementary lease renewal was carried out twice since there was a delay in receiving necessary clearances. For the ML – 227 mine in the state, work is being carried on securing approvals for the mining plans. Additional queries have been raised and responses are being drafted.

For Tamil Nadu’s GO No. 853 mines, these were transferred to SAIL Refractory Company Ltd (SRCL) from Burn Standard last year. And currently, SRCL is integrating results of the public hearing minutes into the Draft Environmental Impact Assessment report, The report apparently is in the final stages of preparation and once the environment clearance is obtained, it will be taken up “for further consideration”.

Go-ahead received

In the case of Kalwar–Nagur in Chattisgarh, the lease deed was granted (renewed) and registered in July. Registration of the mine was done in September, and an “enter upon permission order” was granted in October. Work orders for the mines have been issued.

The Bolani mine in Odisha, which covers 6.9 sq miles, was operationalised in March and an inaugural shipment of 1,136 tonnes of manganese was sent to Rourkela Steel Plant in August.

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