“While renewing mining lease of certain lessees, the state government will ensure that they have captive use in the country,” Steel and Mines Secretray Rajesh Verma told PTI, adding that mineral from the existing mines is used in captive purpose and strictly not for trading.
Hence, second and subsequent renewals cannot be claimed as a matter of right. There must be sufficient reasons to say that such renewal is in the interest of mineral development ” the resolution said.
Odisha being the largest iron ore producer in the country, new policy will hurt plants without captive mines. Industry sources say that big miners like Rungta and Essel have started looking for setting up value addition units in form of benefication or pelletization. No wonder if they acquire or merge with existing units located in the state.
Among other things, the circular states that if the mineral from the mining lease is being used for captive purpose, the area to be renewed shall be limited to the captive requirement of 30 years of the existing capacity of the mineral industry of the lessee. While determining the mineral ore available to the lessee for captive use, the mineral resources of all the leases held by the lessee in the country will be taken into consideration.
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