Orissa HC Lets JSPL Lift Iron Ore from Sup­plier Sarda Mines

Court or­der only ex­tends to the lift­ing of al­ready mined iron ly­ing within mines

The Economic Times - - Companies - Meera.Mo­hanty @times­group.com

Bhubaneswar: In a re­lief for Jin­dal Steel & Power, the Orissa High Court on Fri­day al­lowed the firm to lift iron ore from its longterm sup­plier Sarda Mines, whose mine is cur­rently non-op­er­a­tional for want of clear­ances, and di­rected the state gov­ern­ment to is­sue nec­es­sary or­ders for lift­ing and trans­port of iron ore from the mines. A JSPL spokesper­son and a lawyer con­firmed the or­der. “We have been in­formed that pe­ti­tion to trans­port our iron ore fines, which are ly­ing at the dis­patch point within Sarda Mines has been ac­cepted by the Honourable Orissa High Court. This will en­able us to trans­port our ma­te­rial to our pel­let plant,” the com­pany spokesper­son told ET.

Se­nior of­fi­cials of the state’s min­ing de­part­ment said they are yet to de­cide on the next move. “We have yet to see the or­der, and will take a de­ci­sion af­ter seek­ing a le­gal view,” said a gov­ern­ment of­fi­cial who re­quested not to be named. A mar­ket an­a­lyst track­ing JSPL and its com­peti­tors said, “The or­der re­lates to 12.2 mt of iron ore fines, which at this mines is of a high 65 FE (fer­rous) grade. This as per cur­rent Orissa Min­ing cor­po­ra­tion prices could mean a ben­e­fit of .₹ 1,750 crore for JSPL over one to two years dur­ing which it’s con­sumed.”Ac­cord­ing to min­ing of­fi­cials, another 0.9 mt of ROM may also avail­able at the mine JSPL has been sourc­ing iron ore from Sarda Mines for its pel­let plant which lies at the bot­tom of the hill that is Thaku­rani de­posit where Sarda op­er­ates a 5 mt mine. Com­mis­sions, such as the Shah Com­mis­sion for Il­le­gal Min­ing of iron ore and Man­ganese and the Cen­tral Em­pow­ered Com­mit­tee, had ob­jec­tions on the na­ture of re­la­tion­ship be­tween the two and said that JSPL ben­e­fits from sub­sidised ma­te­rial from Sarda was cost­ing the state ex­che­quer. That mat­ter, and en­vi­ron­men­tal clear­ance for the mines, re­mains to be re­solved by the Supreme Court and the en­vi­ron­ment min­istry, re­spec­tively.

This or­der only ex­tends to the lift­ing of the al­ready mined iron ly­ing within the mines, and will not fa­cil­i­tate fresh min­ing.

JSPL had moved court to be al­lowed to lift iron ore which it had al­ready paid for.

FILE PHOTO

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