By Our Correspondent
BHUBANESWAR/CUTTACK: it seems, the fine imposed on mining firms over shortfall in minimum dispatch heading for a larger legal battle with the Orissa High Court asking miners contesting their minimum production shortfalls to pay in the interim a part of the claim without prejudice, until the next hearing.
While hearing the matter, the High court has asked Tata Steel Mining to pay in the interim INR 200 crores without prejudice to the claim. The amount would be returned to it with simple interest of 5% per annum at the end and depending on the court’s final verdict. This is for shortfalls at its chrome mines. Tata Steel is believed to have sought more time to pay this amount.
JSW Steel similarly has to pay INR 35 crores (against a INR 693.32 crore notice) while Serajuddin was asked to pay INR 400 crores (against the INR 6028 crore notice).
Serajuddin, which faces a INR 6028 crore claim, informed the court on 27 September that it would not be making this deposit. The stay against recovery from the miner is thus vacated but it does not impede the running of the mine, said a lawyer familiar with the case.
Meanwhile AM/NS has deposited under protest and without prejudice, an amount of INR 35.29 crores which it believes is its shortfall. The company though had not challenged the MDPA claims in any court of law.
In response to a demand notice to pay about Rs 130 crore of the State Mines Department, the ArcelorMittal India Private Limited (AMIL) has deposited Rs 35, 29, 92,716 “strictly under protest”.
A demand notice of 135 crore under Sub Rule-I of 12(A) of (Other than Atomic and Hydrocarbon Energy Mineral) concession Rules, 2016 had issued to ArcelorMittal for alleged shortfall of despatch of iron ore at the Thakurani mine.
In a letter to Joint Director Mines Ramakrishna Chinnamsetty, the Head of Mining and Business Development, AMIL, told that if the demand on the shortfall in dispatch is computed correctly the alleged liability would be Rs 35, 29, 92,716 .
Further, the AMIL reiterated that the deposit of the aforesaid amount is strictly under protest and on without prejudice basis to all its rights and contentions in law.
It clarified that the deposit has been made subject to any decision of any court to the contrary, including the proceeding pending before Orissa High Court , where the validity of similar demand notice and Rule 12A of MCR 2016 is under challenge.
The AMIL stated that the computation should be made on the basis of ASP for 12 months only commencing from the effective date of the mining lease of Thakurani Mine which is 27-6-2021 and not the date of the opening of mine. Further, since the shortfall of mineral has not been dispatched from the mines, the liability to pay royalty, DMF and NMET is without any statutory and /or contractual basis.
Located in Keonjhar district, Thakurani block has an estimated reserves of around 179 million tonne (MT) and will meet up to 75% of current requirement of ArcelorMittal Nippon Steel India (AMNS India) for its manufacturing facilities in Odisha. ArcelorMittal Nippon Steel India (AMNS India) owns a 6 million tonne per annum pellet (MTPA) plant in Paradip in the state. The block, with estimated reserves of around 179 MT bagged by AMIPL in February 2020 at a 107.55% premium per tonne. The block has an annual production capacity of 5.5 MT, which can be scaled up to 8 million tonne and its mineral reserves are expected to increase once detailed exploration is complete.
