While mining operations are suspended owing to monsoon rains, the government of the western Indian state of Goa has stipulated that iron ore miners submit a bank guarantee as a pre-condition to receiving “no pollution” certification, a government official said on Friday, July 14.
The official said that miners would need to furnish a bank guarantee to the state pollution control authorities prior to restarting iron ore mining next season, and that leaseholders would stand to have the bank guarantee encashed in case of violation of pollution control laws.
However, it has been learnt from sources that some iron ore mine leaseholders will turn to the courts to challenge the new pre-condition to resume mining operations.
The sources pointed out that mining leaseholders in any case provide a bank guarantee to the Indian Bureau of Mines at the time of seeking approvals for their mining plans and so an additional guarantee is redundant.
However, the government official said that the bank guarantee submitted to the Indian Bureau of Mines is to prevent violations of conditions of the mining plan and operations of the mine which is very different to the purpose of a bank guarantee aimed at preventing violations of anti-pollution laws.