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PrintTATA Steel has halted chromite mine operation at Sukinda as its lease validity expired earlier this month. Even though the company had the option to operate the mine invoking the deemed extension clause mentioned in the mineral concession rules MCR, it could not do so due to unavailability of forest clearances.
Mr UC Jena deputy director of mines of Jajpur Road mines circle said that "TATA Steel has applied for a temporary working permit to the Ministry of Environment and Forest to operate the mine. It has submitted the amount towards NPV of trees as required by law to avail the forest clearances.”
The Sukinda chromite mine covers 406 hectares area including 106 acres of forest land. The lease validity, which was valid for 20 years expired on January 11th 2013. The mine has the capacity to produce 2.4 million tonne of chrome ore every year.
A company source said that they hope to get the temporary working permit within 2 weeks and hence the mines operation should start by the second week of February under deemed extension clause.
The mines lease renewal process normally takes much longer time sometimes over 10 years due to lengthy bureaucratic process. Therefore the MCR provides that if a mining company has applied for renewal of lease deed 1 year before the expiry date then they will be allowed to operate the mine under deemed extension clause even if their lease is not renewed in time.
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