India: Odisha Govt Issues Notification for Halt of Operations at Auctioned Mining Leases

Odisha govt. has issued a notification for the halt of mining operation with effect from 01st Apr'20 for those mining leases whose validity is expiring on 31 Mar'20, SteelMint learned from its credible sources.

Therefore miners are requested to stop all kinds of mining activities in the mining area whose lease is expiring, stated the notification.

In line with MMDR (Amendment) Act 2015, Odisha govt. put up few key major iron ore mines for auction which were due to expire in March 2020. However, the auction process of Badampahar has been put on hold due to some ongoing legal issues. The leases put up for auction are expected to have produced around 65-70 MnT iron ore in FY'20 versus 50-55 MnT in FY19, against an EC limit of 80-85 MnT.

Few of the key mining leases auctioned include Rungta Jajang mines, KJS Ahluwalia, Kaypee Enterprises, Serajuddin Mines, KN Ram, RP Sao, etc. Prominent bidders were JSW Steel, AM/NS, JSPL, etc.

Odisha is India's largest iron ore producing state and accounting for 50% share of India's production and therefore auction of these mines is a matter of concern for the Indian steel industry.

Way forward - With auctions already conducted, the new lessee can commence and continue mining operations on the land in which mining operations were being carried out by the previous lessee, after the execution of the lease deed for a period of two years.

The new lessee shall immediately, but not later than one hundred twenty days from the date of execution of mining lease, apply afresh for all necessary rights, approvals, clearances, licenses and the like under the applicable statutes, rules or regulations, as the case may be, for obtaining the necessary clearances to enable further continuance of the mining operations beyond two years.