SAIL reopened on Friday its 2.4 million tonnes a year Durgaiburu mine, largest among the Gua assets, in Jharkhand, after 22 months of closure.
The listed steel producer had to close the mine on June 15, 2011, for want of environment clearance (EC).
The oldest mechanised and 1,443 hectare mine of the Gua complex in West Singhbhum district can now begin the proposed four-fold capacity expansion on the ground, SAIL sources told
The Ministry of Environment and Forests finally gave the clearance last month, after causing delay in allowing SAIL to restart the mining operation. The Jharkhand State Pollution Control Board gave its formal permission to reopen the mine on Friday.
Impact of closure
Delays in reopening of the mine took its toll on SAIL's monthly and yearly iron ore output.
However, the Government-controlled company SAIL had preferred playing down the shortage of raw material it faced during the past couple of financial years.
The mine employs around 550 regular workers and about 500 contract labours.
Three smaller mines of SAIL in the same complex — Jhillingburu-I (210 ha), Jhillingburu-II (36 ha) and Topailore (14 ha) — are out of operation for long and are in the process of obtaining various approvals.
The Ministry, initially, in 2011, kept Durgaiburu environment clearance on hold, as the forest clearance was not ready.
Keen to expand
In the past couple of years, though the Ministry gave the forest clearance, grant of environment clearance was not forthcoming. According to sources, a complaint by an MP from Gujarat and arrest of a top Environment Ministry official caused additional delay in reopening of the mine.
The mine, set to enhance capacity to 10 million tonnes, is also to have a pellet plant.
The resurrection of Gua is vital for SAIL, as SAIL is going to hike its overall iron ore production to 39 mt by 2015-16.
After expansion, the mine will be one of the major suppliers of iron ore to SAIL plants.
SAIL’s Bolani mines in Keonjhar district of Odisha had to be closed for a month in (November-December 2012) due to absence of timely clearance.
Lease renewal: Relief for miners
No fresh environment clearance will be required for a miner at the time of mine lease renewal.
The Union Government has amended its guiding rules to provide this relief to all mining projects in the country.
In a gazette notification, issued last month, the Ministry of Environment and Forests delinked the renewal of mining lease from the environment clearance process.
“This will smother one of the many a hurdles a miner has to routinely pass through, which causes delay and costs the project dear,” said a PSU mining company’s top official.