A leading mining company has been slapped with ₹2056 crore towards compensation for carrying out excess excavation of iron ore in Odisha’s Keonjhar district.
Sarda Mines Private Limited, mining lease holder of Thakurani Block-B Iron mines, has lease hold area of 947.046 ha in Keonjhar district. However, it was found to have produced iron ore in excess of what was approved under environmental clearance during February and March of 2020. Sarda Mines Private Limited had environment clearance to raise 6.66 lakh tonnes of iron ore during the two months. Instead, the company produced 49.61 lakh tonnes.
The mines directorate took the highest grade lump ore as published by the Indian Bureau of Mines for the corresponding month into calculation. Sale price for the highest grade iron as per IBM in February and March was ₹4691 and ₹4835 respectively.
Subsequently, Directorate of Mines, Keonjhar, held a hearing on the issue on January 25. “But, the reply to show-cause notice issued to the company was observed to be not satisfactory,” the mining directorate said.
“Considering the excess production, the company was liable to pay ₹2056 crore towards cost price as compensation under Section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957 for the monthly excess production,” it said.
