Two public sector listed entities have moved the Ranchi High Court seeking to reopen their mines in Jharkhand.

Steel Authority of India Ltd has challenged the conditions placed by Jharkhand Government before the court for renewal of one of its iron ore mining leases at Gua. Under the State Government’s order, this mine’s operations was stopped in the first week of September.

The High Court is scheduled to hear the case on Thursday. Hindustan Copper Ltd has also sought the intervention of the Ranchi High Court for reopening of its Surdah underground mine, which after two month’s of closure runs the risk of being submerged by seeping water. This case is to be heard on November 20.

In its petition, SAIL said that 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 had expired on February 2009, and was due for second renewal. SAIL sources said the application of renewal was made within the timeframe, prescribed by law. However, the State Government failed to execute the lease renewal and let the public sector steelmaker to 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. However, a Supreme Court-guided recent amendment ended deemed extensions.

HCL’s plight The second renewal of HCL’s Surdah mine fell due in the middle of June this year. However, the State Government has not responded to its lease renewal application.

HCL sought one year’s window for reopening the underground mine primarily to save the inside installations through dewatering and keeping it in the running condition. In its petition, HCL pleaded for an interim relief before the formal renewal issue was sorted out.

Related Topics
comment COMMENT NOW