By Our Correspondent
JODA/CHAMPUA/BHUBANESWAR: Under reporting of grades of minerals is a series issue and causes loss to State exchequer by way of lower collection of various payments such as auction premium, royalty, DMF and NMET. This is especially true for auctioned mines where in a major portion of revenue accrues by way of auction premium.
The detention of as many as 18 Trucks carrying high grade minerals transported from Jagat Janani Services Pvt Ltd run Jururi Iron Ore Mine under Joda mining circle in Keonjhar to Bhadrak’s Dhamra Port by Special Task Force, has once again exposed the ugly nexus of mines owners, who had grabbed Mines through high premium auction.
The Office of Deputy Director of Mines under Joda circle, has served a notice on Jagat Janani Services Pvt Ltd run Jururi Iron Ore Mine asking reply within 7 days. The Transporting Company Tarini Transports also penalized by DDM Joda with Rs 75,000 per truck and totalling Rs 13.50 Lakhs.
In January 2020 , Jagat Janani Services Pvt Ltd had bagged the merchant Mines block at a premium of 126.23%. which spread in an area of 73.23 hects and has reserves of 4.79 MnT iron ore. The mine has EC limit of 2.1 MnT.
Meanwhile following the detention, Enforcement Squads, Mining Squads of DDM Joda conducted searches at mines of Arcelor Mittal Nippon Steel, JSW Steel, Serajuddin and Kashiv Mines.
Searches will continue and action will be taken againt those who found guilty, official’s in DDM Joda said. BJP MP Aparajita Sarangi has been writing regularly to Union Mines Ministry in this regard and in August this year, Mines Ministry had sought action against Kashiv Group of Companies-, Patnaik Minerals Pvt Ltd, Yazdani Steel , PM Granite Exports Pvt Ltd and Agrasen Sponge Industries Pvt Ltd.
IBM had informed Mines Ministry that it had been brought to their notice that some of mining lease holders of Manganese ore in Odisha , are dispatching Manganese ore allegedly as low grade from their mines located in Odisha to the traders operating from West Bengal who subsequently sell it as high grade ore without any processing. IBM had then examined the matter and had prepared a report in respect of Siljora Kalimati Iron and Manganese Ore mine of Kashiv Group of Companies.
The Ministry has previously highlighted the under reporting of grades of iron ore vide letter of even number dated 31.08-2022 and under reporting of grades of chromite ore and manganese ore vide letter even number dated 11.11.2022. Through the said letters, it was requested to develop SOP for preventing loss of revenue prices due to declaration of higher grade as low grades with lower ex-mines prices and to ensure compliance of the Sops. Further it was requested that the possibility of investigation through authorised agency under section 18A of the act for obtaining information on available grades of ores in the lease may be explored.
As per section 23C of the MMDR Act , State Government are empowered to make rules for preventing illegal mining , transportation and storage of minerals . It is responsibility of the State Governments to establish the correct grade of materials being dispatched and charge auction premium , royalty and other payments on the correct grade of minerals.
Further IMB, vide its letter dated 27-09-2022 to this Ministry, had inter-alia highlighted under reporting of grades in auctioned manganese ore minerals in Odisha where in it was observed that in 4 of the 7 auctioned mines which were analysed , the share of low grade manganese ore had increased from 0% in FY-2019-20 to 65% to 100% in FY-2021-22.
Therefore, other auctioned manganese mines where such drastic change in grade of manganese ore has been reported such as Kanther Koira of PM Granite Exports Pvt Ltd, Katasahi of Agrasen Sponge Industries Pvt Ltd, Kolmong of Yazdani Steel and Mahulsukha mines of Patnaik Minerals Pvt Ltd, may also be examined by the State Government, it had said.
Patnaik Minerals Pvt Ltd running Mahulsukha Iron Ore and Manganese Mines while Kashvi Group of Companies running Kalimati Siljora manganese blocks , Agrasen Sponge Industries Pvt Ltd running Katasahi manganese block, PM Granite Exports Pvt Ltd running Kanther-Koira Manganese Block, Yazdani Steel running Kalmong iron ore and manganese mine.
