Goa iron ore mines close down, ore extracted caught in a legal bind

Friday, 16 March 2018 12:17:33 (GMT+3)   |   Kolkata
       

Even as iron ore mining operations in the western Indian state of Goa came to a halt on midnight of March 15, an estimated 2 million mt of ore has been caught in a legal bind, a government official said on Friday, March 16.

The official said that Goa miners extracted an estimated 2 million mt of ore in mid-February when India's Supreme Court ruled that 88 mining leases were illegal and that the mines would be closed by March 15.

Since the court ruled that mining lease renewals are illegal in the absence of the mandatory auction route for allocation of leases, the legal status of the ore already extracted since the court verdict has fallen into a "legal grey area", he said.

In view of the court order closing down mining operations, the Goa government has issued orders to stop not only mining operations but also all transportation of ore from the areas held by the mining leases, the official said.

With transportation of ore prohibited, not only will the aggregate 2 million mt of ore extracted not be able to be moved out, miners are unable to enter into export contracts on the basis of existing pithead stocks.

Incidentally, a cabinet committee of the Goa government has recommended that the latter file a review petition before the Supreme Court, seeking modification of the previous order, enabling present mining lease holders to continue mining operations until such time fresh auctions are held and mining leases will be allocated to new miners, the official said.

Legal options are being considered on whether court guidance could also be sought on the legal status of the ore already extracted, in addition to the proposed review petition.


Similar articles

Daily iron ore prices CFR China - April 19, 2024

19 Apr | Scrap & Raw Materials

Vale's iron ore exports up 97.5 percent in January

19 Apr | Steel News

Major steel and raw material futures prices in China - April 19, 2024

19 Apr | Longs and Billet

Iron ore prices continue to rise, heading towards $120/mt CFR

18 Apr | Scrap & Raw Materials

India’s coking coal import traffic at ports up 10% in FY 2023-24

18 Apr | Steel News

BHP Billiton’s iron ore output down in Q3 FY 2023-24, metallurgical coal output forecast lowered

18 Apr | Steel News

China’s iron ore output increases by 15.3 percent in Q1

18 Apr | Steel News

Major steel and raw material futures prices in China - April 18, 2024

18 Apr | Longs and Billet

Brazilian high-grade iron ore price increases sharply week-on-week

17 Apr | Scrap & Raw Materials

Iron ore production increases at Vale in Q1

17 Apr | Steel News