Clarifying stand on lease renewal of mining companies, the Jharkhand government has said it is ?actively considering? renewal of such leases.
While metal companies, including Tata Steel, SAIL, Hindalco and Uranium Corporation of India, are getting anxious as their stocks of iron ore, bauxite and uranium ore are fast depleting, the closure of 18 mines (12 iron ore, five bauxite and one uranium) in the state has also thrown economic activities in several townships around the mines out of gear.
Mines & geology department secretary Arun said, ?They (the lease renewals) are under active consideration and (some of them are) in an advanced stage. Let the state Cabinet take a decision, after that it won?t take much time as we (the department) are very active?.
?The (lease renewal) applications (of different companies) are in different stages and each one is to be decided on merits and as per law,? the secretary added.
He clarified that as per the Supreme Court order, lease of mines which were running on deemed second and subsequent extensions were to be closed down.
?The onus is on those (companies) who are running the mines on second or third deemed extension. It is they who need to fulfil statutory compliances,? said Arun.
Jharkhand mines and geology department had on September 3 brought a notification closing down 12 of its 17 operational iron ore mines in the state which were operating under deemed extension and whose leases for second and subsequent renewals were pending before the state government for quite some time.
Among those running on deemed extension for second renewal included SAIL?s Gua (Durgaiburu), Kiriburu-Meghataburu and Budhaburu mines, which SAIL sources said contributed around 60%-70% of the PSU?s iron ore needs for running its five integrated steel plants at Rourkela, Bhilai, Durgapur, Bokaro and Burnpur.
Tata Steel?s Noamundi mine, the company?s mainstay for its 10 mtpa steel plant here, too was shut down as its lease was pending third renewal.