States asked for plan to auction mining leases near expiry MINING LEASES EXPIRING IN 2020
With nearly 100 mining leases expiring in 2020, the Ministry of Mines has asked states to submit action plans for their auction by September this year. The action plans would focus on the road map and modalities for the auction.
Committees have been formed at the state level with representatives from the Indian Bureau of Mines (IBM), the Geological Survey of India (GSI), Mineral Exploration Corporation Ltd (MECL), and state directorates of geology to prepare the road map.
Among the 97 mines whose leases are lapsing in 2020, Odisha tops the list with 32.
“We have taken stock of the exploration status of the leases lapsing by 2020. A sixmonthly reporting system is in place to track the activities on exploration carried out by the leaseholders,” said a state government official.
According to the provisions of the amended Mines and Minerals (Development & Regulation) Act, the validity of existing non-merchant mines has been extended till March 31, 2020, and those of captive leases till 2030.
Iron ore blocks going for auctions need to be explored at least up to the G2 level in accordance with the Centre’s policy.
Most of the mining leases expiring in 2020 have not been explored to that level. There is an exploratory obligation on holders of mining leases under the Mineral Concession Development Rules (MCDR), 1988.
Major mining leases lapsing in Odisha include the ones held by Rungta Mines, KJS Ahluwalia, Serajuddin & Co, Kaypee Enterprises, Kalinga Mining Corporation, Mid East Integrated Steel Ltd, KN Ram, RB Das, Tarini Prasad Mohanty, KC Pradhan and Lal Traders.
Steel industries, especially the ones operating without captive ores, are worried over the repercussions if the auctions are not held promptly after the leases expire.
In Odisha, 16 non-captive iron ore leases are lapsing in 2020 and this is expected to shut off iron ore production of 66 million tonne per annum (mtpa).
The state is the biggest iron ore producer in the country, and contributed more than 100 million tonnes (mt) of the pan-Indian output of 192 mt in 2016-17.
“Though there are a number of virgin iron ore blocks in Odisha that can be offered for auctions, most of them are not explored up to the G2 level. Incomplete exploration and lack of a road map yet to auction the lapsing leases will hurt iron ore supplies to the steel units,” said an official with a steel company.
Next to Odisha is Tamil Nadu where leases of 28 mines, most of them nonfunctional, are lapsing in 2020. Madhya Pradesh has 12 such leases followed by 11 in Gujarat, five in Andhra Pradesh, four in Rajasthan, and two in Maharashtra.