Odisha’s Serajuddin Mine Clear Penalty Dues – Sources

According to market sources report to SteelMint, Odisha’s 2nd largest merchant miner – Serajuddin Mines has cleared the penalty amount dues along with the interest payment for the illegal iron ore mining case. However confirmation on the same is still awaited from government officials. 

Trade sources are of the view that with the penalty payments been made, the miner will now be informing state government and are waiting for the next hearing to be conducted by Supreme Court. As per the SC of India website, the next hearing is scheduled on 09 Feb’18. Market participants are hopeful of resumption of operations at mines after SC hearing.

Prior to this, the Apex Court conducted hearing on Odisha illegal iron ore mining on 30 Jan’18. Out of five iron ore working mines that were asked to shut down operations, two among them have made the payment. Essel Mining and IDCOL have submitted the penalty amount in the Apex Court. The Apex court condoned the delay and granted IDCOL permission to operate the mines subject to payment of 12% interest for 11 days. In case of Essel Mining ten days time was granted for verification of EC and FC clearances. However Serajuddin Mines, MESCO have were unable to submit the penalties till 30 Jan’18.

Serajuddin Mines is Odisha’s 2nd largest merchant miner with EC limit of 15.15 MnT pa with annual production of around 10 MnT. The miner has dispatched 9.56 MnT in CY’17 and remained a major source of iron ore to steel firms like JSW Steel, Essar Steel, Bhushan Steel along with other sponge and steel units.

JSW was the largest buyer of iron ore from Serrajuddin in CY’17 at 1.84 MnT contributing 19% of total share of iron ore dispatches by Serajuddin Mines. Other major buyers were – Bhushan Steel 1.59 MnT (17% share), Essar Steel 1.23 MnT (13% share), and Rashmi Metaliks 0.85 MnT (9% share).

Earlier, on 02 Aug’17 the Supreme Court of India issued a judgment on illegal iron ore mining case in the state of Odisha. In a common cause notice issued to Odisha based merchant miners; they were alleged of excess production beyond the granted EC (Environmental Clearance) limits. In its order, the Supreme Court (SC) called for the recovery of 100% compensation in lieu of the excess ore lifted to be submitted 31 Dec’17.