September 07,
The Government plans to re-assess mineral reserves in mines already owned by metal companies to determine whether such mines can be released to new entrants that have applied for ore supplies for proposed projects.
If finalized, the move could impact captive mining operations of metal companies such as SAIL, Tata Steel, Hindalco. These companies own mines which were allocated to them decades ago.
“We do not have a record of resources lying in captive mines of metal companies. The States have been asked to re-assess these operations to see that mineral resources are put to maximum use,” said Mines Minister, B K Handique.
“If production potential from captive mines is much beyond the need of a company, the surplus could be released for allocation to other companies,” he added.
The Mines Ministry’s latest plan is aimed at ensuring transparency in allocation of mineral resources and to prevent unused national resources from getting locked in captive mining operations of companies.
The Government’s re-assessment of reserve potential would also determine whether companies like Tata Steel and SAIL deserve more mines to be allotted to feed their capacity expansions. While the companies have put in applications for more mine allocations, the government hasn’t approved them so far, said a Mines Ministry official.
Source: The Economic Times
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