Inoperative Iron Ore Leases may be Terminated
PTI reported that India’s mines ministry has made a proposal to terminate the iron ore leases of those working mines that have not started production even after a lapse of 7-8 months of auction and have not maintained minimum dispatch for three consecutive quarters. The mines ministry proposed to do so through the amendment of certain mining rules and has invited comments from the stakeholders on the same. The mines ministry said “The ministry of mines has prepared the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Amendment) Rules, 2021, seeking to amend the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016. Accordingly, it is proposed to strengthen the norms of minimum production/dispatch through amendment of Rule 12A of the MCR Rules, 1960, in order to ensure sustained supply of mineral in the market in future.”
Several successful bidders of such working mines whose previous mining leases expired on March 31, 2020, have not started production even after a lapse of 7-8 months of auction and execution of mining leases in their favour.