PTI reported that miners' body Federation of Indian Mineral Industries welcomed the imposition of ban by the government on sale or export of iron ore from captive mines and demanded its strict enforcement to prevent misuse by the allottees.
Mr RK Sharma general secretary told PTI that "We hail the decision to impose a ban on sale or export of iron ore from mines given to firms for captive use. We have been raising the issue with the Centre as well as the Jharkhand government."
FIMI is of the opinion that not only the iron ore but minerals from any mine allotted for captive use should be consumed for the specific purpose.
Mr Sharma said that "It should not be allowed for any other purpose like export or sale in the open market, else the same would result in increased production by the allottee for profit making."
The statement comes in the wake of the Centre banning states from allowing sale or export of iron ore by companies granted mining leases for own steel production.
The Mines Ministry has said in a recent notification that "The entire ore produced in the mining operation of captive mines shall be used exclusively for own consumption in iron or steel making and cannot be either sold in India or exported to other countries."
The Centre invoked Rule 27 (3) of the Mineral Concession Rules 1960 based upon a reference received from the state Government of Jharkhand for imposition of special condition. For restricting for sale of export of iron ore for all mining leases proposed to be executed granted, or proposed to be renewed to an applicant who had been given preference in allotment."
The move comes after the Jharkhand government, last year, allowed one time sale of iron ore fines by Usha Martin and state run Steel Authority of India Limited, who were given captive mines for consumption in steel mills.
Jharkhand had relaxed a ban on exports of iron ore from captive mines to allow the two companies to sell ore fines through a one time domestic sale, leading to opposition.
Source - Press Trust of India
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