Goa iron-ore mines in legal uncertainty over mine closure plans

30th APril 2018

Iron-ore mines in the western Indian province of Goa, which were closed under a Supreme Court order, have been caught in a legal grey area relating to implementation of mine closure plans.

As per regulations, every mine that closes down has to comply with mine closure plans approved by the Indian Bureau of Mines (IBM) and once implemented, be vetted by the IBM.

The Supreme Court on March 15 ordered the closing down of 88 iron-ore mines in Goa, holding the renewal of the leases for these mines without the mandatory process of auction to be ‘illegal’.

However, the IBM is unsure about going ahead with getting the erstwhile mining leaseholders to implement mining closure plans, since even though operations have stopped, the mines will likely be brought back to production once the Goa government goes ahead and new mining leases have been issued through auctions.

As per Mineral Conservation and Development Rules 2017, all mines have to implement either a progressive or final mine closure plan. Under a progressive mine closure plan, miners have to undertake reclamation and rehabilitation in the course of mining operations through a continuous process that is reviewed every five years by IBM. In final closure, each mine has to submit a plan to IBM two years ahead of final closing down of operations.

Goa government officials said that with 88 mines closing down suddenly from March 15,  a legal grey area had emerged as to who would implement progressive mine closure plans, as erstwhile lease holders have been directed to evacuate the mining sites.

The legality of implementing a final mine closure plan was also open to challenge since these mines were slated to go up for auction within the next year, the officials added.

They said that the IBM would seek legal opinion before taking a final decision on implementing mine closure plans or not.

Meanwhile, in a related legal logjam, the Goa government has informed the courts that seven-million tons of iron-ore was lying at various stockyards and jetties, outside the mining lease areas when mining operations were forced to shut down.

The stocks are currently at the centre of yet another legal tussle over whether the order to shut down the mines also included a ban on transportation of iron-ore produced prior to the closure of the mines.

The miners have made a legal presentation that since the stock is outside the mining lease area and royalties have already been paid, they should be allowed to transport the ore to buyers.

Source: CREAMER MEDIA MINING WEEKLY

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