JSW Steel seeks consent to give up Gonua iron ore mine in Odisha
Express News Service
BHUBANESWAR: Sajjan Jindal-led JSW Steel has provided to give up one of many 4 iron ore mines it bagged via e-auctions final 12 months at steep premiums. In its August 11 give up discover to the Director of Mines, the steelmaker has expressed its incapacity to function Gonua iron ore mines in Sundargarh district as a result of low grade ore and logistics issues.
“We intend to surrender the entire area of Gonua iron ore mining lease under Rule-21 of Mineral Concession Rules (MCR), 2016 with effect from August 12, 2022 and we will submit the final mine closure plan before IBM,” stated the authorised signatory of the corporate within the discover.
JSW had executed the mining lease deed on June 27, 2020 and commenced mining operation on July 1, 2020. “The mining operation has become economically unviable due to high shale in bottom benches, low grade mineral in top benches and serious logistic issues due to space constraint,” the discover stated.
As Gonua iron ore block is a working mine with an estimated reserve of 118 million tonne (MT), the corporate has requested the State authorities to simply accept the give up proposal and make clear IBM in case any question raised by it whereas processing the approval of ultimate mine closure plan.
In an aggressive bidding, JSW Steel emerged the popular bidder for Gonua iron ore block with a proposal to pay a premium of 132 per cent.
The steelmaker with a manufacturing capability of 18 million tonne each year (MTPA) had additionally bagged Nuagaon iron ore with highest reserve of 792.93 MT, Narayanposhi iron ore block with a inventory of 190 MT and Jajanga block with a reserve of 39.42 MT.
JSW Steel has proposed to arrange a greenfield metal undertaking of 12 MTPA close to Paradip in Jagatsinghpur district at an funding of over Rs 53,000 crore.
Sources within the mining industries stated JSW might hand over its proper to Jajanga iron ore block for motive much like Gonua. In each the circumstances, the lessee failed to realize Model Mine Development and Production Agreement (MDPA) beneath which the mines proprietor have to supply a minimum of 80 per cent of the typical manufacturing of the earlier two years.
On August 13, Joda Joint Director of Mines served a discover to Jajanga iron ore block of JSW Steel citing demand on shortfall in despatch vis a vis the minimal dispatch required beneath Sub Rule 1 of 12A of Other than Atomic and Hydrocarbon Energy Mineral Concession Rules, 2016.
The firm is learnt to have paid stamp responsibility of Rs 110 crore for Gonua and a efficiency assure of about Rs 50 crore.
