India: Jharkhand to reserve seven iron and manganese mines for state PSU

Hemant Soren's cabinet has agreed to reserve 7 iron ore and manganese leases whose terms recently have come to an end.

The Jharkhand government intends granting these deposits to state-owned Jharkhand State Mineral Development Corporation. It will require the Centre's approval for this.

Soren, who leads a Jharkhand Mukti Morcha, Congress, and RJD alliance, believes mining needs a more cautious and studied approach considering the displacement of tribals and environmental degradation it has already caused in Jharkhand. His government has also moved the Supreme Court against the Centre's decision to auction commercial coal blocks complaining that no socio-economic study had been carried out and the state had not been consulted.

While the Centre has amended laws to allow a transfer of environment and forest clearances to the next lessee, for a period of two years, this provision is only available to mines acquired through an auction.

The deposits are located in West Singhbhum and come under the Chaibasa, DMO. The mines are:

Jharkhand is the top five iron ore producing states in India with an annual production of around 26 mn t, which is 10% of India's total iron ore production. Most of the production comes from the Tata Steel and Steel Authority of India Ltd (SAIL) which is used for their captive consumption.