Supreme Court allows iron ore mining in Goa with upper limit of 20MT - Economic Times

Prices | Financials | Company Info | Reports

NEW DELHI: The Supreme Court on Monday allowed mining to resume in Goa, subject to an annual cap of 20 million tonnes from leases other than dumps, lifting a ban that it imposed in 2012 but disallowing all so-called deemed lease holders from continuing with the activity.

The news led to a jump in the stock of Sesa Sterlite, which has the state's largest mines. It rose to the highest in eight months in intra-day trade before ending at Rs201.80 on the BSE, up 4.78 per cent. "Sesa Sterlite welcomes the news on lifting of the iron ore mining ban in the state of Goa, announced by the Supreme Court today," the company said in an emailed release. "We will work constructively with the central and state government authorities to restart mining. Sesa Sterlite is committed to following responsible and sustainable mining practices."

The deemed leaseholders say they were awarded these in perpetuity by the Portuguese when Goa was a colony. Under a 1987 Act they were treated as deemed leases, i.e. deemed to have been renewed after expiring that year for 20 years until 2007. These leaseholders had claimed they deserve one more extension of 20 years.

The top court held any mining by such leaseholders after November 22, 2007, was illegal and refused to quash the state and environment ministry notifications of September 10, 2012, and September 14, 2012, respectively, banning mining and keeping environmental clearances in abeyance.

The top court instead asked the state government to firm up a policy of granting fresh leases to all such deemed leaseholders, a process that could take time. The existing provision in the Mines and Minerals (Development and Regulation) or MMDR Act makes auctions mandatory only for allotment of coal blocks, not iron ore, said senior advocate CU Singh, who appeared for the Goa Mining Association. Any such policy would therefore entail laying down criteria etc. for determining 'inter se' eligibility of applicants. Such a policy would be subject to judicial review. The cap of 20 million tonnes would, however, be an interim arrangement.

An expert committee would suggest ways of dealing with mining dumps and submit a report within a year on the final cap. Commenting on the decision, Goa chief minister Manohar Parrikar told ET: "The Goa government welcomes the SC order as a great opportunity for regulated mining in the state. We see the order as a step towards lawful resumption of mining and the complete exposure of the misdeeds of the Congress government in Goa."

"The order couldn't have been any worse. It's come as shock. What can we do if the state has not renewed our leases? This is terrible!," said a mine owner who asked no to be named. The Goa Mineral Ore Exporter's Association which has been leading the fight was not ready to comment yet.

Copyright © 2014 Times Internet Limited. All rights reserved.