By Our Correspondent
BHUBANESWAR/JODA/KOIRA: With the current mining lessees working under Joda-Koira mining circles of Odisha’s mineral rich Keonjhar and Sundargarh are deliberately delaying production with the hope that the impending MMDR and rule amendments which they are pushing with the Union Mines Ministry will lessen their burden of payment to the State Government, shortfall in Monthly dispatch of Iron Ore of 6 auctioned Mines caused huge losses to Odisha Government. The short fall in dispatch in 6 big seize iron ore blocks now a cause of concern.
These 6 big size mining blocks were, Narayanposhi iron and manganese mine, Ganua iron ore mine, Jajang iron ore mine and Nuagaon iron ore mine of Sajjan Jindal led M/s JSW Steel Limited with total EC capacity of 29.3 MTPA but have dispatched only about 4 MT(54%) against minimum dispatch requirement of 7.4 MT during July-November. Similarly, Balda iron ore mine of M/s Serajuddin has dispatched only 0.30 MT (7%) against dispatch requirement of 3.8 MT and Thakurani iron ore mine of M/s Arcelor Mittal of Laxmi Mittal has dispatched only 0.23 MT (23%) against minimum dispatch requirement of 1.8 MT during the period from July to November.
Nuagaon Mines block of JSW Steel had been served notice to collect crores of additional stamp duty as differential stamp duty and differential registration fee due to enhancement of production as per approved mining plan in respect of Nuagaon mine of JSW but hectic lobbies are going on to reduce the stamp duty rates.
Sources said these 6 mines firms deliberately violating Rule 12-A of the Mineral Concession Rules. The prices of iron ore have skyrocketed by 207% from Rs 2,047 per tonne in July to Rs 6,350/tonne in December for 62-65% Fe grade fines as these miners continue to play with law and the Government machinery.
As per provision, the new lessee is required to maintain such level of production so as to ensure minimum dispatch of 80% of the average of the annual production of two immediately preceding years on pro-rata basis, failing which appropriate actions in accordance with respective MDPAs shall be initiated as prescribed under rule 12A(1) of the Mineral Concession Amendment Rules 2020. “A rough calculation of losses in these 6 blocks would be around Rs 3000 crore and the Government should impose penalty on these auctioned mines for their failure to maintain minimum dispatch,” sources said.
It may be noted here that, Months back, Director of Mines had served show cause notice to JSW Steel. In its show-cause notice to JSW Steel, the Director Mines had mentioned that, in Narayanposh iron ore mine, the JSW has dispatched only 2,45,829.58 MT iron ore which is 4,81,853 MT iron ore and 388. 47MT Manganese ore short of the prescribed target of dispatch and, thus, JSW violated Rule 12A(1) of MCR read with Para 8.1and schedule “D” of the MDPA.
In Ganua block, the JSW has dispatched only 34,683.17 MT which is 78,419 .83 MTs short of the prescribed target of dispatch. In case of Nuagaon block , the company dispatched only 2,56,718.98 MT which is 7,53,081 .02 MT short of the prescribed target of dispatch In Jajang block, it dispatched 3,07,173.48 MT which is 17,70,736 .08 MT short of the prescribed target of dispatch. Thus till September 21, the JSW Ltd’ total dispatch shortfall was 30, 84,090.91 MT. Calculating at conservative prices 62-65%Fe grade iron ore at Rs 3,286 per tonne for lumps. The officials of Directorate of Mines recently conducted spot visits of Jajang, Nuagaon, Ganua and Narayanposhi iron ore mines of JSW.
The JSW had violated Rule 12A(1) of MCR, 2016 read with Schedule D of MDPA in ensuring minimum 80% dispatch of the average of the annual production of two immediately preceding years on pro-rata basis from the auctioned mines, which resulted Rs 1,154.68 crore loss to Odisha. At that time, till September, the JSW failed to dispatch 30, 84,090.91 MT iron ore as per agreement for which the Government lost huge amount of revenue. The Mines Director slapped show cause notice to the JSW for violation of the MCR rule.
Few days back, Odisha Government had suspended the mining operation of Murgabeda Iron Ore Mines of DR Pattanaik over 15.378 hectares (ha), Jaribahal Mine of Kashvi International over 107.440 ha and Deojhar Mines of Tarini Minerals over 34.365 ha under Champua Sub Division of Keonjhar district for violation of MCDR 1988 and the provision of Rule 10 (5) of OMPTS Rules 2007 but same yardstick not being followed in case of JSW Steel, Arcellor-Mittal and Sirajudin Mines , sources added.
