ROURKELA: With eight non-captive mines under Koida mining circle facing closure soon, mineral royalty from the region is poised for a sizeable drop from 2020-21 onwards.
The mining circle has been recording phenomenal growth in royalty over the last few years.
As per the new mining guidelines, mining leases of eight non-captive mines in the mining circle having completed 50 years or more would get cancelled for new auction.
Although three mines were auctioned two years back, there is no word yet on when they would start operation.
Koida-based Deputy Director of Mines (DDM) Salil Behera informed that as of now 32 of 77 mines are in operation.
In 2018-19 the total dispatch was 30 million tonnes per annum (MTPA).
He confirmed that eight operational mines with combined production capacities of 10 to 12 MTPA would be permanently closed by March 2020.
Industrialist and former president of Odisha Sponge Iron Manufacturers’ Association, Gouri Shankar Agarwal said iron and steel industries are worried at the prospect of acute shortage of iron ore after closure of these mines as their auction is being inordinately delayed.
He said even if auction of mines is completed on war-footing, they cannot be immediately made operational as statutory clearances from the Ministry of Environment and Forest and Indian Bureau of Mines would take several years.
Agarwal hoped the Central Government would extend validity of key statutory approvals like environment and forest clearances by three years with respect to expiring mining leases for hassle-free auction of the mines and seamless change in ownership.
In 2018-19 financial year, the mining circle generated mining royalty of a whopping Rs 1,713 crore against the target of Rs 1,020 crore.
Buoyed, the Mining Department has raised the target for 2019-20 to Rs 1,400 crore.
Sources in the mining circle said like last year they are hopeful of surpassing the revenue target easily and they also target to raise mineral dispatch to 35 to 36 MTPA.
Mining Worry
Mining leases of eight non-captive mines in the mining circle having completed 50 years or more would get cancelled for new auction. These have a combined production capacities of 10 to 12 MTPA.