*Update: India: Tata Steel stops production at chromite mine as lease ends

Tata Steel Ltd, India’s
third-largest steel producer, has halted production at its chromite mine in
Sukinda in Orissa following the expiry of its mining lease on 12 January.

Its clearances are
delayed, two senior mining officials in the state said.

The company’s spokesman
confirmed it had stopped production at the mine and added Tata Steel was
confident of getting the clearances that would allow it to resume activity.

“Their renewal is under
process, it takes time,” said Deepak Kumar Mohanty, director of mines in
Orissa. “They can get a ‘deemed extension’ and continue to mine (till the lease
is renewed), provided they show statutory clearances.”

* “Their mines are
closed since 11^th Jan but they are eligible for a deemed renewal. Since
they do not have a forest clearance, they have to stop mining. They have also
applied for a TWP (Temporary work permit) but it is under process”, said Joda
deputy director of mines (DDM) Umesh Chandra Jena.

With the mining department
preoccupied by the Orissa government campaign against illegal mining, other
work such as clearances has taken a back seat, said another official.

An 8 January notice had asked
Tata Steel to stop mining, said another senior mining official in Jajpur
district where the chromite mine is located.

Chromite is an essential
ingredient in the making of stainless steel. The mine has been in operation
since the 1960s.It caters to the ferro alloys and minerals division of the
company, the largest non-steel business of Tata Steel, besides selling to other
steel plants.