Collect fine from miners, SC to Odisha

Payment of ~ 70-billion unpaid compensation may reopen closed mines and boost iron ore output

The Supreme Court on Tuesday ordered the Odisha government to take steps to collect over ~70-billion unpaid compensation from iron ore and manganese mine owners towards excess mining in the state.

The court also asked the stateowned Industrial Development Corporation (Idcol) to pay interest at the rate of 12 per cent per annum for the period of delayed payment of compensation after expiry of the deadline on December 31.

The condoning of delayed payment by Idcol has raised hopes among other defaulting miners to pay their dues along with the court stipulated interest and restart operation. If that happens, the iron ore production in the state may revive from the next fiscal, beating dismal projections.

After the December 31-deadline lapsed, the Odisha government had stopped operations of seven iron and manganese ore mines for non-receipt of the penalty money. The shutdown of these mines knocked off about 20 million

lion tonnes (mt) in annual iron ore mining capacity. The deficit in JanuaryMarch quarter is estimated to be around 3 mt.

The closure of working iron ore mines triggered unprecedented hike in prices by both odisha min ers and the National Mineral Development Iron ore lumps Corporation prices climbed (NMDC). up by ~400-500 per tonne. “Once production resumes from the closed mines, there will be ample supplies and this will arrest any further

hike in prices. Besides, there are some non-working mines who have paid penalties and they are expected to restart operations after other statutory violations cases against them are resolved,” said a miner.

The apex court, in August last year, had said that iron ore and manganese raised by miners between 2000-01 and 2010-11 beyond statutory approvals like forest and environment clearances be considered illegal. It had called for recovery of 100 per cent compensation towards the value of excess ore lifted by them, calculated at ~175.76 billion by the Central Empowered Committee (CEC) appointed by the Supreme Court earlier.

The Odisha government had issued notices to 131 errant mine owners. Out of them, 72 miners had fully or partially paid compensation by the 2017-end, while a few, such as Idcol and Aditya Birla group owned Essel Mining, deposited the penalty amount after the due date. Altogether, ~101.89 billion has been collected from the errant miners, so far.

Restarting of operations by some key non-working iron ore mines, especially the ones held by Essel Mining, will help add nearly 30 mt in the iron ore production each year.

Sources said, 44 of the 131 mines, which were served notice by the government, are yet to pay the compensation.