India: Ministry of Environment says Sarda Mines EC invalid, must stop work

Sarda Mines will have to stop operation immediately as per orders of the Ministry of Environment and Forest and Climate Change that finds its environment clearance invalid.

The MoEF&CC on Monday wrote to its counterpart in Odisha asking it to stop work at the Thakurani iron ore mines with immediate effect. SteelMint has seen a copy of this letter which also wants the miner penalised.

Sarda Mines, the leaseholder of this high-grade deposit, has long-term arrangements with Jindal Steel and Power Ltd. The impact of its closure will have repercussions on the steelmaker and could further aggravate the shortage of ore that secondary suppliers have been complaining about.

It took Sarda Mines more time than others to explain the finer details of its unique EC to the Supreme Court. Mining finally resumed in January of this year, after it deposited INR 933 crore as compensation for mining over and above various permitted caps. According to SteelMint data between Jan-July the mine has produced about 8 mnt of iron ore.

Sarda Mines had applied for an extension of its EC to MoEFCC's environmental impact assessment committee in December of 2019. Like most of Odisha's iron and manganese mines held guilty by the apex court in 2017, this too was a "violation case".

The matter was heard again in May and June before being referred to the Ministry of Law and Justice. The latter was of the view that Sarda's 2004 EC had been granted under EIA 1994 and was only valid for five years. The 2015 permission for 4 mnt was also illegal, and the EC dated 22 Sept'08 was valid only until 2013-14. Its resumption thus was contrary both to the law and to the SC order dated 15 Jan'20, says the letter dated 21 Sept'20.

The letter addressed to the Additional Chief Secretary, Forest and Environment, Odisha also wants appropriate action taken against the miner for violating norms and penalised under provisions of the Environment Protection Act 1986 for the period during which mining had resumed. The Mines Ministry intends to amend Section 21(5) of the MMDR Act, as it stands today interpreted by SC's 2 Aug'17 order, the provision leaves Sarda Mines vulnerable to another recovery claim.