In the recent development related to deemed renewal mining issues, which has forced steel majors like Steel Authority of India Limited (SAIL) and Tata to shutdown their Iron ore mines, Ranchi High Court has ordered the state government to allow SAIL to re-start its Gua mines.
SAIL was granted mining lease for Durgaiburu Mining Lease of Gua ore mines for 30 years on 22 Feb, 1949 and it was renewed for a period of 30 years, which expired on 21 Feb, 2009. It submitted its application for renewal of Durgaiburu Mining Lease of Gua ore mines on 08 Feb, 2008 seeking 2nd renewal along with all necessary statutory clearances.
A report from the Indian Bureau of Mines (IBM) in terms of Rule 24A(3) of Mineral Concession Rules, 1960 was sought and a favourable recommendation was given by Indian Bureau of Mines vide letter dated 28 Aug, 2014. Also, it wrote a letter to the Central government on 20 Aug, 2014 seeking exemption with respect to certain conditions. However, the state government ordered to stop mining operations in Jharkahnd w.e.f 04 Sep, 2014 along with penalty claimed by the state government for ore mined after expiry of leases.
SAIL had challenged the penalty condition imposed by the state government before the Ranchi High Court for renewal of one of its Iron ore mining leases at Gua in Jharkhand. Under the state government’s order, this mines operations were stopped from the first week of September. However, the court told SAIL to fulfil other conditions before restarting of operations.
SAIL produces about 11 MnT from Jharkhand mines.
For State High Court Order Copy: Click here
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