India: Jharkhand Government makes Lease Renewal tough for Banned Mines

Jharkhand government has asked 11 banned Iron ore mines to pay up the value of Iron ore extracted from the mines from the expiry date of lease to the date of current renewal, whenever that takes place.

Going by the Supreme Court’s decision of declaring mines as ’illegal’, the mining companies were in dilemma that they would have to pay large amount to get their mining leases renewed. But, the Jharkhand government had issued a letter to the companies, in which it was not mentioned that the amount they have to pay is for the ‘illegal’ mining  as it is for overrun of their last lease tenure.

Company officials of SAIL & Tata have confirmed their receipt of letters from the state government regarding aforesaid, while, others are yet to receive it.

On 05 Sep, 2014, 12 Iron ore mines (11 Iron ore & one Manganese ore mine), which were running under 2nd and 3rd subsequent deemed renewal i.e. with non renewal of mining licenses in West Singhbhum district of Jharkhand, had been asked to cease operations by District Mining Officer (DMO) of Chaibasa (Jharkhand).


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