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.