In a major setback to iron ore mining in the western Indian state of Goa, India's Supreme Court on Wednesday, February 7, quashed all second renewals of mining leases by the Goa government and ordered the closure of all such mines by March 15, 2018.
All iron ore mines operating for the current season are operating through second renewals of leases by the Goa government granted over the past few months.
The Supreme Court in a judgment given on Wednesday said that second renewals of mining leases issued by the Goa government under which the iron ore mines resumed operations in the current season were in violation of the law and that all fresh leases will have to be granted through a bidding process.Directing the federal government to issue fresh environmental clearances to mining companies, the Supreme Court directed the setting up of a Special Investigation Team comprising chartered accountants to recover amounts from mining companies to the extent of the value of iron ore already extracted under renewed mining leases, as the latter were issued in violation of law.
All current iron ore mining operations in Goa will have to be stopped by March 15 and the Goa government has been directed to grant new leases thereafter through the auction process, the Supreme Court verdict said.