Following the orders of Honourable Supreme Court of India , JSPL has begun transportation of its processed and royalty paid iron ore from its supplier’s mines (Sarda mines) in distt. Keonjhar , Odisha.
“This is a great relief to the company in terms of bolstering its working capital and raw material security ” said Mr. V R Sharma, MD JSPL.
On 30th Jan’20, Supreme Court permitted Sarda mines to resume operations. Apex court allowed on the condition to pay dues (INR 933 crore) towards environmental compensation to Odisha Govt. by 29 Feb’20, as reported by PTI. The honorable court made it clear that JSPL can transport iron ore lying at Sarda mines only after Sarda pays INR 933 crore towards compensation for the environment.
The operations at mine were closed since 31st Mar’14. The order of transportation of ore brings relief to JSPL as the company’s 30% iron ore demand is met from its captive Tensa mines and for rest 70% it is dependent on the merchant market.
Sarda mines Pvt Ltd holds a lease Thakurani (Block B) iron ore mines at Keonjhar, Odisha. The mine has an EC limit of 4 MnT.
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