India’s JSW Limited has put in an application to the Odisha government seeking consent to surrender the Gonua iron ore mine which the steel company had secured through competitive bidding at an auction, government sources said on Thursday, August 26.
The sources said that, in the application seeking to surrender the mine, JSW Limited has cited the low grade iron ore at Gonua and insurmountable logistical challenges as reasons for its inability to develop the mine.
“We intend to surrender the entire area of the Gonua iron ore mining lease under Rule-21 of the Mineral Concession Rules (MCR), 2016, with effect from August 12, 2022, and we will submit the final mine closure plan before the Indian Bureau of Mines (IBM)," the sources said quoting from the company’s application seeking consent to surrender the mine.
The Gonua mine has estimated reserves of 118 million mt.