By Our Correspondent
BHUBANESWAR/JODA/KOIRA: Leading merchant miners those who lost their running mines under Joda-Koira mining circles of Odisha’s mineral rich Keonjhar-Sundargarh in recent auction, are desperately waiting for State Steel and Mines Department’s move to auction as many as 9 Virgin mining blocks.
The estimated iron ore reserve in these blocks is 574 million tones located at Pureibahal (38.30 Million Tonnes), Chandiposhi (33.73 MT), Jhumka-Pathiriposi (114 MT), Dholtapahad (23.92 MT), Netrabandha Pahar-West (17.27 MT) in Sundaragarh district; and Rengalaberha-North-East (28.87 MT), Gandhalpada (314.37 MT), Unchabali (3.6 MT) and Kalimati in Kendujhar district. While Kalimati is a manganese block (0.686 MT) and Unchabali is a mix of iron and manganese, the rest blocks are iron ore. Iron ore is the raw material for steel production.
Early this year, Odisha Government had successfully auctioned at least 23 Iron, Manganese and Chrome Ore Blocks having resources worth Rs.4.87 Lakh Crore by 18 March, 2020. The State got one of the highest premiums like 144 percent in auction of one of its mineral blocks – Guali Iron Ore mines bagged by JSPL.Out of 23 mineral blocks, 11 are in Keonjhar, 08 in Sundargarh, 03 in Jajpur and 01 in Mayurbhanj.
Apart from Rungta Mines Limited Group, Jindal Steel and Power Ltd, Essel Mining and Industries Ltd, a subsidiary of Aditya Birla Group, also eyeing on several virgin blocks. Serajuddin &Co, JSW Steel, Vedanta, Tatas, Thriveni Earth Movers Pvt Ltd, and others also eyeing on these virgin blocks.
Odisha is the highest steel producing State in the country and the production target is 100 million tonnes per annum by 2030. With new reforms and auction process, now the responsibility of setting up of the Project Monitoring Unit (PMU) and getting environmental clearance and forest clearance lies on the State Government.
As per the new guidelines, the Government will set up a project monitoring unit (PMU) to complete the preparatory work for obtaining requisite clearances, approvals and related work. The PMU will obtain all the clearances for starting a mining project.
Since mining plan is the basic document to start mining operation on which hinges the environmental clearance (EC) and forest clearance (FC), the PMU is mandated to get the plan prepared by engaging a qualified person. The mining plan will be approved by the Indian Bureau of Mines (IBM) within a period of 15 days.
This will allow successful bidder the flexibility to either enhance or reduce the production limit by 25 per cent.The forest clearance (FC) has two stages. The PMU will complete the process and obtain the FC stage-I clearance as no financial commitment is required or levy to be paid.
Successful bidders will make all payments on accounts of net present value (NPV), compensatory afforestation and other related levies and charges during the FC stage-II clearance.Since obtaining land rights for mining is another time consuming process, the Ministry said PMU should get the land rights for mining in case of both Government as well as privately-owned land.
The Government will also apply and obtain all other clearances which are required for the lessee to start the mining operations.And, for virgin blocks, the lessees will be tasked with obtaining all necessary approvals before they can lay their hands on the untapped resources. Shortly, the new leaseholders would sign Mine Development & Production Agreements (MDPAs) and eventually, the lease deeds to keep the mines running again. Since the ‘deemed clearances’ granted by the Centre are valid for two years from the date of expiry of lease validity, the new lessees will stick to the same technology and comply with the already prescribed mining plans of the Indian Bureau of Mines.
It may be noted here that the Odisha Mines Department had made an abortive bid to auction both Chandiposhi and Purheibahal in May 2018- this preceded the online auctions of the merchant mine blocks. But a PIL filed in the Delhi High Court, contesting the participation of a bidder with more area under leasehold than what Rules permitted then had queered the pitch for auctions. The contentious provision that hobbled the road to auctions, stalling it for more than a year smoothened after the Centre finally revised the cap on mine lease area (for Odisha) to 58 square kilometres (sq km).
