India: Goan Miners allowed iron ore dispatch until 31 Jan'21

Goan miners have been granted an extension until the end of January 2021 to dispatch material mined before 16 March 2019, when mining came to halt in the state.

Tuesday's order by a three-judge bench led by Chief Justice S.A. Bobde only deals with despatch and not tenure of leases which remains sub-judice. It brings about 4 mn t of iron to the market and hope for lessees in Odisha who SteelMint has learnt have similarly sought more time beyond 31 Oct 2020 to dispatch material. Companies such as Serajuddin, Essel Mining, Rungta Mines and KJS Ahluwalia whose erstwhile mines in some cases are already being operated by new lessees have sought additional time from the government invoking force majeure.

Background

Deciding that all of Goa's iron-ore and manganese-ore leases had expired on 22 Nov 2007, the SC in the Goa Foundation vs. Sesa Sterlite Ltd matter directed mining to be halted from 16 March 2018. Further litigation led to the clarification from the apex court on 30 January 2020 that this deadline was only for mining and not for transportation of already mined material, which could be allowed for another six months (or until 30 July 2020) on the expiry or termination of lease under The Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016.

Contending that Covid19 lockdown measures had been imposed within two months of the judgment (on 24 March 2020) and that statutory authorities had delayed issuing transit permits, miners had moved court for additional time. This had been opposed by the NGO Goa Foundation which argued that the January order only applied to ore on which royalty had been paid before 15 March 2018.

The Order

The SC is of the view that royalty is payable at the time of removal or consumption. While agreeing with Goa Foundation that the state should have invoked Rule 12(1)(hh) of MCR 2016 and confiscated the material lying at mine sites for more than two and a half years, it believed it should have done so before the lessees were granted six months by the SC. It added, "We should also clarify that, we should not be understood as saying as though the power under Rule 12(1) (hh) is no more available to the State."

For order copy, Click here

It is for the state to decide what the actual quantum of material is. Speaking to the media after the order was made public on Tuesday, Chief Minister Pramod Sawant estimated it was about 4 mn t.