The Odisha High Court has issued notices to the state and union government over the controversial deemed extension clause of Mineral Concession Rule (MCR), 1960, which allows miners to operate their mines even after the lease expiry under special cases.

The High Court, admitting a petition filed by Biswajit Mohanty to strike down the clause, has issued notices to state and union government. It has also issued an interim order saying that miners cannot operate the mines under the deemed extension clause without the leave of the court.

The Orissa High Court on Wednesday ordered the state government to take the court’s permission before allowing operation of mines that are functioning under deemed extension clause of the Mineral C

The Directorate of Mines on Monday informed the Supreme Court appointed Centrally Empowered Committee (CEC) that it has completed the process of lease renewal of 40 mines, which are working under deemed extension provision.

“The CEC queried about the status of mines operating under deemed extension provision. We informed them that we have sent recommendation letters for 40 mines out of 50 working under deemed extension basis. Rest of the cases will be expedited soon,” said Deepak Mohanty, after his meeting with CEC officials here on Monday.

As many as 54 mining leases in Odisha are operating under deemed extension following the expiry of their leases. The expiry period of the leases ranges from five to 25 years.

According to information given by minister for steel & mines Rajani Kant Singh in the state assembly, mine owners like Tata Steel, Jindal Steel & Power Ltd (JSPL), Odisha Mining Corporation (OMC), Essel Mining & Industries Ltd (EMIL), Mid East Integrated Steel Ltd, Ferro Alloys Corporation (FACOR), Rungta Sons and KJS Ahluwalia are operating their leases under deemed extension.

Miners also asked to explain why contiguous leases have bot been combined though Rule 38 of Mineral Concession rules 1960

The Supreme Court-appointed Central Empowered Committee (CEC) investigating into alleged illegal mining activities has asked mining companies operating in Goa to explain violations of rules, even as miners brace themselves for the impact of a continuing ban on mining activities in the state. “The CEC sought our views on four issues including placement of dumps outside lease boundaries, contiguous nature of some mines, transfer of leases and the Supreme Court’s interpretation of the buffer zone issue, in its meeting with the mining association members on Wednesday,” a member of the Goa Mineral Ore Exporters Association (GMOEA) said.

The Shah Commission has asked Jindal Steel & Power Ltd (JSPL) and Sarada Mines to submit relevant information on violation of Rule-37 of Mineral Concession Rules-1960 by November 11.

The probe panel has sought information on whether environment clearance was available for conveyor belt of Sarada Mines’ Thakurani iron ore mine lease, the quantum of ore despatched to JSPL's end-use plant at Raigharh and if ore extracted from the mine was put to any other use.

Sarada Mines has been found to sell its entire run of mine (ROM) produce to JSPL without any agreement

The Shah Commission of enquiry, mandated to probe into allegations of large scale illegal mining, has asked Jindal Steel & Power Ltd (JSPL) and Sarada Mines to submit relevant information on violation of Rule-37 of Mineral Concession Rules-1960 by November 11. The probe panel has sought information on whether environment clearance was available for conveyor belt of Sarada Mines' Thakurani iron ore mine lease, the quantum of ore despatched to JSPL's end-use plant at Raigharh and if ore extracted from the mine was put to any other use.

Bhubaneswar When Union Minister of State for Chemicals and Fertilisers Srikant Jena described Orissa’s mining scam as bigger than those of Goa and Karnataka put together, it might have been only a figure of speech. But indication of how big it could be has come now, with a penalty demand note of Rs 68,000-odd crore sent by the Orissa steel and mines department to the holders of 103 mining leases for excess mining between 2000 and 2010.

The showcause and demand notices to companies such as Tata Steel, Essel Mining, Rungtas and Indrani Patnaik for extracting iron ore and manganese beyond the permissible limit set by the authorities came almost three years after the mining scam had broken out in the state. Incidentally, the order came when members of the Justice M B Shah Commission, now probing the scam, were touring the state for the third time in less than a year.

Nine private miners are likely to lose their mining leases in the state following a recent decision of the steel & mines department to cancel all applications for renewal of leases made between 1987 and 1994.

The department on Saturday had decided to bring such leases back to the fold of the state government against the backdrop of an ongoing probe into alleged large scale illegal mining activities in the state by the visiting M B Shah commission of enquiry.