Odisha
government’s new guidelines for mining renewals are going to hit hard the
merchant miners in the state. If implemented, experts anticipate, the miners
including some big names operating under deemed extension have to shut shop
resulting sharp increase in the demand-supply gap and subsequently price of iron ore in the
state.
The
Odisha government on its new resolution on 3rd October has circulated
a new guideline for the second and subsequent renewal of iron ore, Manganese,
Chromite and Bauxite mines in the state. According to the circular, if the
mineral from the mining lease is being used for captive purpose, the areas to
be renewed shall be limited to the captive requirement of 30 years of the
existing capacity of the mineral industry of the lessee. It said the leases
awaiting second and subsequent renewal but operating under the clause of deemed
extension will be covered by this policy. However in such cases the raising of
mineral may be limited to captive consumption only.
Since the government has stressed that
only mines contributing to mineral development (value addition) will be
considered for renewal of mining leases on priority basis,
the mining lease renewal application of merchant miners may have to
wait for some more time, even as they can operate in the meanwhile on deemed
extension basis. Still, as the resolution further says that miners cannot claim
the renewal of leases just because they have got it earlier, it indicates a
shut down threat for them.
In a conference held by FIMI (Federation of Indian Minerals and Industries) big miners including Rungta mines have talked about setting up or acquiring some plants in the state.
Reported by Tapan Moharana
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