Despatches from Sarda Mine’s Thakurani B deposit, including that of ore belonging to Jindal Steel and Power Ltd (JSPL), resumed on Thursday.
The state’s mining department had halted both mining and despatches on 23 October 2020 with a long list of complaints against the SMPL: on how stacks were arranged, on how ore was being transported and even on the quantum of material claimed by JSPL as its.
Sources close to JSPL and in Joda told SteelMint that mining and despatch had been allowed after a penalty of about INR 5 lakh imposed on SMPL.
The resumption of business will come as a relief to JSPL, SMPL’s long-term buyer, which has about 5mt of already paid for iron ore left within Thakurani’s leasehold. The steelmaker expects to move this to its plant sites by January.
Meanwhile JSPL’s representatives also met with officials in Odisha’s Steel and Mines department to defend their concerns over the 5.7 mn t pa Guali mine for which the steelmaker had offered the highest bid. JSPL had been issued a show cause notice for delaying in executing a lease deed. The steelmaker however contends there is a mismatch in the GPS coordinates of the lease on paper with its actual boundary on ground.
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