Odisha Auction 2020: SC Hearing on Essel Mining's Jilling Case Delayed Amid Lockdown - Sources

The Supreme Court had put a hold to transfer of Essel's Jilling iron ore mines auctioned under MMDR act, SteelMint reported in mid Feb '20. This was done as a writ petition was filed by Essel Mining Industries Ltd, a subsidiary company of Aditya Birla.

The case was scheduled for hearing in the third week of March. However, according to recent market participants reports to SteelMint, the hearing has been postponed due to lockdown imposed. A source shared that SC is taking up hearing for only urgent cases and hearing for rest of the cases are likely to be taken up after lock-down ends.

What is the case all about ?

Essel Mining could not continue mining operations over Jilling-Langalota Mining Lease for 39 months, i.e. 3 years and 3 months, the period during which its application for resumption was pending before this Hon'ble Court despite having all statutory clearances and for reasons beyond the control of the Applicant.

As such the Applicant has filed an IA No.7121 of 2020 before this Hon'ble Court praying for extension of the mining lease period of the Jilling-Langalota Mining Lease on account of time lost in litigation only for the period when the mine was not working/not resumed even though the Applicant had obtained all the statutory clearances/approvals required and which can be termed as reasons beyond the control of the Applicant.

In the meantime the State of Odisha has vide Notice Inviting Tender (NIT) notified the Jilling-Langalota Mining Iron Ore Block for settlement afresh by way of auction dated 6 Dec'19 in exercise of power under Section lOB of the MMDR Act.Jilling Langalota mines received aggressive participation from bidders. Outstripping other bidders, Shyam emerged as preferred bidder for the mine quoting a premium of 135%, as per sources.

Essel Mining has EC limit of 6.28 MnT pa and resources of 79.122 MnT.