BS reported that the Orissa High Court today extended the stay on grant of prospecting license by the Union government for Khandadhar iron ore mines in favor of POSCO India till August 5th 2009.

The High Court also put off the hearing on the case pertaining to the recommendation of the Orissa government for grant of PL to the company till then.

Orissa government recommended PL in favour of Posco India over 2500 hectares in village Kensara, Bhutuda, Rantha, Batagaon, Sareikala, Lusi and Raisuan under Bonai sub-division of Sundergarh district on January 9th 2009. The recommendation was made to the union government under provisions of section 5 (1) and 11 (5) of Mines and Minerals (Development & Regulation) Act, 1956, as iron ore is a mineral specified in the first schedule of the act.

Kudremukh Iron Ore Company Limited had earlier moved the Orissa High Court challenging the action of the Orissa government in recommending POSCO’s name for grant of PL without taking a decision on its application. Subsequently, the chief minister’s approval was obtained to issue rejection letter to the company.

(Sourced from BS)